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SR-HA-2 (8) ~ ~ #A-~ JUL ? 3 199\ CDD:HD:JT: Ie Housing Authority Meeting: Santa Monica, California TO: Housing Authority FROM: City Staff SUBJECT: Resolution Approving the Submission of an Application for 72 Housing Assistance Vouchers and Certificates. INTRODUCTION The Department of Housing and Urban Development (HUD) through a Notice of Funding Availability (NOFA) appearing in the May 20, 1991 Federal Register has informed housing authorities of the availability of new VOl.i.chers and Certificates for the Section 8 Program. This report transmits for adoption a resolution authorizing the submission of an application for 36 Certificates and 36 Vouchers. BACKGROUND The Santa Monica Housing Authority administers two types of federal rental assistance programs: (1) the section 8 Housing certificate Program and (2) the Section 8 Housing Voucher Program. Both programs provide assistance to participating households. As famil ies move, the assistance moves with them rather than being dedicated to the units. Both are based on the tenant paying 30% of their adjusted income as their portion of the rent. On the Certificate program eligible tenants pay 30% of their income towards the rent regardless of the total rent on the unit. The II ~-~ JUL 2 3 1991 , . 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 established by the Federal Government. Certificates are transferrable statewide. 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 to insure the greatest mobility for Section 8 applicants. In the previous six years, the Federal Government, through HUD, has made more Vouchers available than certificates. The Santa Monica Housing Authority currently has an allocation of 559 certificates and 167 Vouchers. There are 2,096 Certificates and Vouchers available in the Los Angeles area office of HUD. HUD has changed the method by which applications for section 8 certificates and Vouchers are processed. All housing authorities can apply for Certificates and Vouchers. Previously, HUD has invited only certain housing authorities to apply. Applications are due on July 29, 1991. The attached resolution . . must be forwarded to HUO with the formal application. Staff believes that the Housing Authority has a good opportunity to receive additional Vouchers and Certificates. contingent upon receipt of allocation, the Housing Authority will need to enter into an Annual Contributions Contract (ACC) with BUD. The ACe governs the use of the new allocation. FISCAL/BUDGETARY IMPACT Funding to Santa Monica Housing Authority Section 8 program Certificates and Voucher holders are budgeted in account number 12- 700-699-00000-7734-00000. The adopted budget for FY 1991-92 anticipates a 72 unit increase. Further, at any time, only 98% of currently allocated units are leased. Due to budget factors and given the lead time necessary to secure federal appproval and to implement leasing of the additional units staff believes that there is sufficient existing authority to accommodate the requested 72 units as well as the original application for 72 additional units for a total of 144 potential units this fiscal year. RECOMMENDATION It is recommended that the Housing Authority adopt the attached resolution authorizing the submission of the application for additional Vouchers and Certificates. Prepared by: Nancy West, Housing Program Manager Jody Thompson, Housing Specialist Community Development Department Attachment: Resolution :nofa - - ~--- , ~ . . . RESOLUTION NO. 47 (HAS) (HOUSING AUTHORITY SERIES) A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA APPROVING THE SUBMISSION OF AN APPLICATION FOR 72 HOUSING ASSISTANCE VOUCHERS/CERTIFICATES WHEREAS, the Department of Housing and Urban Development is currently accepting applications from public Housing Agencies for Section 8 Existing Housing Vouchers/Certificates; and WHEREAS, this Authority proposes to apply for a total of 72 additional Section 8 Existing Housing VOUChers/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 of the SUbmission of an application for 72 additional section 8 Existing Housing VOUChers/Certificates. 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 ...::..t....__-,......, -, -~ _~4.....,...........;o&__ -). U ROBERT MYERS City Attorney :res.2 . . , . ADOPTED AND APPROVED this 23rd day of July, 1991 ~ Ll"G l.- Chairperson 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 23rd day of July, 1991, by the following vote of the Authority: AYES: Commissioner: Genser, Katz, Olsen, Vazquez, Zane, Abdo NOES: Commissioner: None ABSENT: Commissioner: Holbrook ATTEST: ~.. . "/).. ..~ ~.'>/ _<:0'!'~Y""~J 5'/~ ~ Cler ha