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JAN 2 6 1999
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Housmg Authority meeting January 26,1999 Santa Monica, California
To HOUSing Authonty
From City Staff
SubJect Recommendation to Approve RevIsions to the Administrative Plan of the HOUSing
Authonty of the City of Santa Monica In order to comply with current Federal
regulations.
INTRODUCTION
This report recommends reVISions to the Administrative Plan of the HOUSing AuthOrity of
the City of Santa Monica The recommended revIsions Incorporate mandatory federal
requirements as well as discretionary changes to local operatIng poliCies as permitted
under federal regulations
BACKGROUND
The Housmg Authority [s admlnlstered accordmg to applicable federal regulations and
requirements Some of these reqUIrements are not mcluded In the Housmg AuthOrity's
Admlnlstratrve Plan, last updated In 1992
The Administrative Plan outlines the poliCies and procedures by which the Housmg
AuthOrity admInisters the SectIon 8 Program and Its special needs programs Includmg the
Family Self SuffiCiency, Shelter Plus Care Program, and Family UnIfication Programs
Federal regulatrons require that the Administrative Plan state Housmg Authonty policy on
matters for which the HOUSing Authonty IS permItted some discretion to establish local
pohcy
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JAN 2 6 1999
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DISCUSSION
The following are the recommended reVISions to the Administrative Plan
(1) Elimination of Federal Preference categories for the waiting list and
(2) Creation of new Local Preference categories for the waiting list
Section 8 tenants are currently given preference on the waiting list If they meet one of the
three Federal preferences The preferences Include (1) paymg 50% of monthly Income
for rent and utilities for a minimum of 90 days, (2) mvoluntary displacement whIch IS
defined as displacement to aVOId reprisals, hate Crimes, inaccessibility and diSpOSItion by
HUD of a multifamily project, and (3) livIng In substandard housing
HUD has eliminated the previously mandatory federal preferences while leaving housing
authorities the option of adopting federal preferences as local preferences Staff
recommends that the HOUSing Authorrty not adopt the federal preferences as local
preferences Rather, staff recommends that the Housmg Authonty adopt a ranking
preference for applicants who are residents of Santa Monica or who are working (or hIred
to work) In the City of Santa MOnica for a minimum of 36 hours per week Staff further
recommends that the Housmg Authonty adopt an additional rankmg preference for tenants
partIcIpatIng In the City-funded Tenant Rental ASSIstance Program (TARP) who have
chosen to remain In their apartments and terminate their Section 8 assistance
A ranking preference Will result In Santa Monica reSidents and workers being placed hIgher
on the waiting list The HOUSing Element documents the need for affordable hOUSing for
Santa Monrca reSidents and that avaIlability of the Section 8 program as a cntlcal resource
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to assist needy local resIdents and workers An additional rankmg preference for TARP
participants will result In their bemg placed even higher on the waiting list Staff feels that
this additional ranking preference is warranted gIven that the T ARP participants were
forced to choose between Section 8 and T ARP because their landlord had canceled his
or her Section 8 contract
Residents who are displaced as a result of a disaster, governmental action or pursuant to
the Ellis Act will continue to receive the highest priority assIstance in the Section 8
program
(3) Occupancy/Subsidy Standards
HUD establishes minimum and maximum apartment occupancy standards and permits
local hOUSing authorrtles discretion to operate Within the range of these standards Staff
recommends the incorporation of thIS fleXibility Into the Administrative Plan whJle specifying
a preferred local standard which strikes a balance between the HUD minimum and
maximum standards
(4) Information staff may orovlde to property owners regardmg prospective tenants
HUD regulations require that the HOUSing AuthOrity Inform prospective landlords that tenant
screening IS their responsibility In addition, the HOUSing Authorrty must give the landlord
a family's current and prior addresses, If known, and the names and addresses of current
and prror landlords HUD regulatIons also allow the HOUSing AuthOrity to prOVIde additional
information, If known, regarding tenants' unpaid rent histOry, property damage history and
drug trafflckmg hIstory to prospectIve landlords.
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Staff believes that It is the landlord's responsibilIty, as It IS with non-Section 8 prospectIve
tenants, to screen prospective Sectron 8 tenants for pnor rent payment histOry, outstanding
debts owed to prevIous owners, history of damage to rental properties and polIce records.
The Housing Authonty actively encourages landlords to screen prospective Section 8
tenants
(5) Determination of who will receive assistance If/when a family breaks uo
In lieu of a court order, HUD regulatrons require that the Admmlstratlon Plan descnbe the
Housing Authonty's POliCY, regarding who retains the Section 8 subsidy when the family
household breaks up Staff recommends that the Housmg Authonty, In Instances where
there IS no legal determination, allow family members to attempt to come to a mutual
agreement
If a mutual agreement can not be made, staff recommends that Section 8 staff make the
decIsion as to who retains the subsidy based pnmanly on the following factors (In no order
of preference) (1) who retains custody ofthe children or, If the children are separated, who
retains custody of the youngest child, (2) which adult remains In the umt, (3) the adult
listed as head of household when the subsidy was Initiated, and (4) recommendations of
social service professionals
(6) Length of time a tenant may be absent from his or her unit
HUD regulations restnct the number of consecutive days that a tenant may be absent from
his or her unrt to 180 days The 180 day time penod IS largely mtended for Section 8
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tenants who require nursing home care However, the regulations do not restnct the
reason for extended absences from a Unit to nursing home or other medical and
rehabilitative care. Housing assistance payments terminate If the family IS absent for
longer than the maximum penod permitted and the term of the Section 8 contract and the
lease also terminate
A Section 8 tenant IS required to promptly notify the Housing Authonty of absence from his
or her unIt and to provIde any InformatIon or certificatIon required by the SectIon 8 program
to validate on-going Section 8 eligibility durmg the absence Tenants are required to
maintain their umts dunng their absence, pay utIlitIes, and not sub-lease theIr unit or allow
anyone to live In the Unit The Section 8 program retains the nght to Inspect a family's unit
dunng absence to venfy the compliance with the program's absence reqUirements
At Its discretion I the HOUSing Authonty may allow absence for a lesser penod of time Staff
recommends establishing an absence penod of 180 days for medical reasons and an
absence penod of 90 days for non-medical reasons Staff feels that the 180 penod IS
necessary In order to accommodate the needs of the large Section 8 senior and disabled
population In Santa MOnica Non-medical absences generally Involve out-of-state and out-
of-country family VIsitS. Staff feels that the length of non-medical absences should be
limited In order to best utilize the limited funding assistance available to the Section 8
program Staff recommends that exceptions to the 90 day non-medical limit be made due
to extenuatmg cIrcumstances
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(7) Establlshmg mInimum rent
HUD regulattons require that a household pay a minimum rent between $25 and $50 per
month Staff recommends that the Housing Authority adopt a mmlmum rent of $25 The
average amount of rent paid by a Section 8 household IS $240 per month Tenants paymg
the minimum rent are restricted to those who have no Income and those who receive
General Assistance, Staff feels that requmng a higher amount would create an undue
burden on the poorest SectIon 8 tenants
(8) Denial or termination of assistance for violent crime or drug related actiVity
HUD regulations state that rental assistance may be denied to or terminated for a Section
8 applicant or Section 8 partICipant upon eVidence of the commiSSion of a violent crimInal
or drug related activity Violent criminal activity mcludes any criminal activity that has as
one of ItS elements the use, attempted use, or threatened use of physical force agamst a
person or property Drug related cnmlnal activity means the manufacture, sale or
dlstnbutlon of a controlled substance or the use and possessIon of a controlled substance
Exceptions to the drug related use and possession may be made If the person IS no longer
engaged In the Illegal use of drugs and the unacceptable behaVior IS no longer eVident and
the person has successfully completed a drug or, If also applicable, an alcohol
rehabilitation program Verrficatlon of these circumstances must be proVided by the
applicant
Staff currently request and receive information from the Santa MOnica Police Department
(SMPD) regarding the number and nature of SMPD calls to speCific addresses In Santa
MOnica Staff uses thiS information to confirm information received from other sources
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regardmg complaints about SectIon 8 tenants Staff has used the Information obtained
from SMPD to augment specific complaints received from owners, management firms and
neighbors about the activIties of Section 8 tenants In many cases, the polrce call
mformatlon received from SMPD has been sufficient to terminate Section 8 participants
The Section 8 program currently does not require that a cnmlnal background check be
done for Section 8 applicants and participants Federal and State regulations are unclear
as to whether a Housing AuthOrity which does not own or manage property IS entitled to
cnmmal background Information In addition, the fact that almost half of our Section 8
population are seniors, limits both the need and utility of requiring cnmlnal background
checks for all participants ReqUIring cnmlnal background checks probably can not be
done selectively and therefore all applicants and participants would have to undergo a
background check
Staff recommends that the HOUSing Authonty not requrre that crlmmal background checks
be required for Section 8 applicants or partiCipants Staff belreves that the current
information received from SMPD IS suffiCient to validate complamts received from other
sources and to proceed With denial and termination If warranted
(9) Tenant-caused HOUSing Qualrty Standards Violation
The HOUSing Authonty IS required to Inspect a unit to ensure that It meets Housmg Quality
Standards (HaS) before a family can receive rental assistance and at least annually
thereafter. The Housmg Authonty's Inspection protocols follow HUD reqUirements and staff
use the HUD Inspection forms to document the results of the InspectIon HaS defiCienCies
whIch cause a Unit to fall an inspection must be corrected by the responSible party whether
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or not the responsible party IS the owner or the tenant If the deficiencies are not corrected
wlthrn the specified time frame, the Housmg Authonty ceases payment to the owner
New HUD regulations require that the tenant must malntam tenant supplied appliances and
utilities and IS also responsible for any Housmg Quality Standards (HQS) violations caused
by a family member or guest HUD regulations allow that Section 8 assistance can be
termmated If the household does not marntam tenant supplied appliances and utilities or
correct HOS violations after a reasonable penod of time
Staff recommends that the HOUSing Authority adopt a policy which requires that tenants
correct tenant-caused deficiencies which are not of an emergency nature within 30 days
of an inspectIon or wIthIn a staff approved extension FaIlure to make the reqUIred repaIrs
within the reqUired time frame will result rn termmatlon of assistance to the household.
(10) Grounds for demal or termination of assistance
HUD regulations give the Housmg Authority discretionary chOice to deny or terminate
Section 8 assistance for the follOWing reasons
(a) The family violates any family obligations under the program,
(b) Any member of the family has ever been eVicted from public hOUSing for any
reason;
(c) Any HOUSing Authonty has ever termmated assistance under the Certificate
or Voucher program for any member of the famIly,
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(d) The family currently owes rent or other amounts to the Housing Authonty or
to another Housing Authonty In connection with Section 8 or public housing
assistance,
(e) The family has not reimbursed any Housing Authonty for claims paid under
an Old Rule Contract,
(f) The family breaches an agreement to pay amounts owed to an Housing
Authority, including amounts paid to an owner by an Housmg Authority on
behalf of the family,
(g) The family has engaged In or threatened abusive or violent behavior toward
Housing Authority personnel,
(h) The famIly IS engaged In 1IIegal use of a controlled substance or abuse of
alcohol,
(I) Persons who have been eVicted from publIc housing, Indian housing, Section
8, or Section 23 programs for drug-related cnmlnal activity are Ineligible for
three years following the date of the eViction The Housing Authority may
waive thiS restnctlon If
(I) The family member(s) who engaged In the Illegal activity has/have
successfully completed an Housing Authority approved rehabilitation
program and has/have not engaged In such activity for at least one
year, OR
(II) The family member(s) who engaged In the illegal actiVIty has/have not
lived with the family for at least one year
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(Ill) Exceptions may be made to this criterion If the person IS no longer
engaged In the Illegal use of drugs or abuse of alcohol and the
unacceptable behavior IS no longer eVIdent and the person has
successfully completed a drug or alcohol rehabilitation program
Verification of these circumstances must be provided by the applicant
In deciding whether to deny or temllnate assistance because of action or failure to act by
members of the family, the HOUSIng Authority has discretion to conSider all of the
circumstances In each case, Includmg
. The senousness of the case,
. The extent of participation or culpability of indiVidual family members,
. The length of time since the violation occurred and the family's record SInce,
and
. The effects of denial or termination of assistance on other family members
who were not Involved In the action or failure to act
As a condition of continued assIstance for other family members, the Housmg Authority
may Impose a requirement that family members who participated In or were culpable not
reside m the Unit
Staff recommends that the HOUSing AuthOrity adopt all the options listed above regarding
denial and/or termination of assistance
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(11) Dlsaooroval of Section 8 property owners
New HUD regulations gIve Housmg Authontles the option to deny participation In the
Section 8 program to owners who have
. Been barred by HUD or other Housing Authorities from participation In the Section
8 prog ram
. Violated a Section 8 contract
. Committed fraud, bnbery or any other corrupt or cnmlnal act In connection with a
federal hOUSing program
. Engaged In drug trafficking.
. A history or practice of noncompliance with HOUSing Quality Standards (HQS)
. Violated Fair HOUSing laws or gUidelines
. Failed to pay real estate taxes, fines or assessments
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Staff recommends that the Housmg Authonty approve the following owner participation
restrictions
DISAPPROVAL OF OWNERS/PARTICIPATION RESTRICTIONS
BREACH MAXIMUM
PENALTY
Collecting excess rent 1 yea r
Unallowed charges for services or amenities 1 yea r
Collecting HAP on unit not occupied by participant 3 years
Failure to correct serious HQS defICienCies resultmg In 3 or more
abatements over 12 months In vanous units or 3 abatements In 1 year
the same Unit dunng one contract term
Failure to prOVide owner-supplied utilitIes or services 1 year
Fraudulent Claim 1 yea r
DISCrimination In provIsion of services or Violation of Fair HOUSing
rules 1 year
HUD debarment/suspension Until HUD
reinstates
CommIssion of fraud, bribery or any other corrupt or criminal act
In connection With a federal hOUSing program Permanent
Engaging In drug trafficking 3 years
(12) Process of reVISIon of the voucher payment standard
For vouchers the rental subSidy provided for the tenant IS the difference between 30% of
the family's adjusted Income and the applicable standard The rent for a voucher holder's
apartment can exceed the FMR if the voucher holder IS Willing to pay the difference. The
payment standard IS set by the HOUSing AuthOrity The payment standard can not exceed
the FMR or the Exception Rent standards If applicable Currently, the Santa MOnica
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voucher payment standard equals the Exception Rent standards The HousIng Authority
has the discretIon to review and If necessary, revise the subsidy standard for the Voucher
program on an annual basis
The HousIng Authorrty must establish a policy regarding how often the payment standard
IS to be reviewed and If necessary, revised by staff Staff recommends that the payment
standard be revIewed and revised, If necessary, by staff on an annual basIs The
recommended time frame mirrors the time frame that HUD uses to adjust the FMR
I n the Voucher Program, the rental subsidy prOVided for the tenant IS the d,.fference
between 30% of the household's adjusted Income and the applicable payment standard
The rent for the umt may exceed the Fair Market Rent (FMR) If the household IS wlllmg to
pay the difference
The payment standard IS set by the Section 8 program and can not exceed either the FMR
or HUD approved exception rents Currently the Voucher Payment Standards mirror the
HUD approved exceptIon rents HUD regulations reqUire that the Housing Authorrty must
set a policy regardIng how often the payment standard IS to be reviewed and, If need be,
revised by staff
Staff recommends that the Voucher Payment Standards be revIewed on an annual basIs
or more frequently If circumstances warrant an expedited review
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(13) Homeless Transitional Housmg Program(s) Set-a-slde
To enhance the transition from homelessness to permanent housmg, staff recommends
the creation of a Homeless Transitional Housmg Program set-a-slde which will provide a
lImIted number of certIficates or vouchers to clients of City of Santa MOnica funded non-
profit homeless transitional housmg program(s) that are located wlthm the City of Santa
Monica To be eligible, a person must be referred by an eligible agency, must have
successfully completed the reqUIrements of that agency(s)and must be otherwIse eligible
for Section 8 assistance.
When available, the HA Will set-a-slde 20 certificates or vouchers on an annual baSIS for
a penod not to exceed five years The City of Santa MOnica non-profit funded homeless
transitional housmg program(s) Will be selected by the SMHA through a Request for
Proposal (RFP) process Certificates or vouchers are made available from eXisting
allocations to the SMHA Section 8 program
To be eligible for the homeless transitional set-a-slde program, the head of household must
agree to partICipate In the SMHA Family Self SuffiCiency (FSS) program and must sign a
Contract of PartiCipation In the form prescrrbed by HUD A referred family m which the
head of household IS eIther a senlor or a person With disabilities IS conSidered to have met
the FSS requirement In addition, to be eligible, the head of household must have
successfully completed any and all of the requirements of the City of Santa MOnica non~
profit funded homeless transitional housmg program(s). ThiS requirement must be
docu mented In wrrtmg by the referrmg City of Santa MOnica non-profit funded homeless
transitional housing program(s)
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FINANCIAL/BUDGETARY IMPACTS
There are no financial or budgetary impacts that result from the approval of thiS staff report
RECOMMENDATION
Staff recommends that the Housing Authority adopt the reVISions to the Administrative
Plan of the Housmg Authorrty of the City of Santa MOnica
Prepared by Jeff Mathieu, Director, Resource Management Department
Bob Moncrief, Housmg and Redevelopment Manager
Peter Mezza, Housing Coordinator
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