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SR-CC/HA-2 . . CJ_I H A -2- . APR 1 2 1994 RMD:JM:PB:SW Santa Monica, CA Housing Authority Meeting: April 12, 1994 To: Santa Mon1ca City Counc11 Santa Monica Housing Authority From: city staff Subject: Resolut1on Authorizing Housing Authority Executive Director to Sign Contracts for Eighteen Month Emergency Certificates Introduction This report recommends the Housing Authority authorize the Executive Director to execute the Annual Contributions Contract (ABC) for 18 Month Emergency Certif1cates for 1ndividualsjfam1lies displaced by the Northridge Earthquake. It is antic1pated that more than one allocation will be received depending on subsidy contracts in Santa Mon1ca. Backqround The Department of Housing and Urban Development ( HUD ) has made Emergency Sect10n 8 Certificates available to those Housing Authorities severely impacted by the earthquake. These Certificates, unlike the regular Section 8 program, are effective for a maximum of 18 months. Other aspects of the program are sim1lar to the regular section 8 Program, for example, the aSs1stance 1S based on the appl1cant contributing 30% of monthly income to housing, and the local Housing Authority 1nspects the new unit and negotiates rent. These certif1cates are transferrable anywhere 1n California. To rece1ve ass1stance under the special program, an applicant must f1t the guideI1nes for low income and , . must have been displaced by the Earthquake. Acceptable forms of verification of displacement lnclude evidence of prior residence in a building that is on the red or yellow tagged list or FEMA or Red Cross certification. Green tag apartments will be lndlvidually inspected to determine habitabllity. Discussion The Santa Monica Housing Authority currently admlnlsters over 900 section 8 subsidies. Since January 20, 1994, the Authority has issued close to 700 speclal certificates. Over 350 households have located new unlts under the program wlth approximately 50 households locating units in Santa Monica. Staff anticipates that eventually about 100 households will enter leases for units ln Santa Monica with these Emergency Certlficates. In thlS allocatlon, HUD has made 65 Sectlon 8 subs idles avallable with budget authority of $847,178 for 18 months. HUD has the right to adjust these figures if it is determined that the total budget 15 not needed to meet disaster needs. BUdget/Financial Impact The contract authorizes up to $847,178 for 18 months to pay the cost of Housing Assistance Payments and all administrative costs involved in leasing up the new allocations. Based on existing and projected util1zation for the remalnder of FY 1993/94, budgets at account 12-700-695-00000-7734-00000 need to be increased by $372,060 to pay for the Housing Assistance Payments associated with the Emergency certiflcates, and, account 12-700-695-00000-7725- . 00000 by $68,445 to pay for the administrative costs associated with the Emergency Certificates. Budget authority for the remainder of the $847,178 will be reflected in the proposed FY 1994/95 city budget. Recommendation Staff recommends: a) the Housing Authority adopt the attached Resolution authorizl.ng the Executive Director to execute these Contracts for Emergency Certl.fl.cates; and b) the Cl.ty Council approve FY 1993/94 budget changes set forth above. Prepared by : Jeff Mathieu, Resource Management Director Paula Burrier, Housing and Redevelopment Manager steve Wagner, Housing Coordinator Attachments: c:\wpfiles\staffrpt\reso - -- . . . RESOLUTION NO. 62 (HAS) RESOLUTION OF THE SANTA MONICA HOUSING AUTHORITY AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE ACC FOR 65 EMERGENCY CERTIFICATES WHEREAS, the Housing Authority has approved participation in the Department of Housing and Urban Development (HUD) Existing Housing Certificate and Voucher programs; and WHEREAS, HUD has made Emergency certificates available for 18 months for individuals/families displaced by the earthquake; NOW, THEREFORE, the Santa Monica Hous1ng Authority resolves as follows: Section 1: The Hous~ng Authority hereby authorlzes the Executive Director (or his designee) to execute any and all Annual Contributions Contracts and related documents necessary to obtain Emergency section 8 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: ~~ MARSHA JO S MOUTR City Attorney c:\wpwin\rosm ~ n _ . . Adopted and approved thiS 12th day of Apnl, 1994 ~~L 'hair I hereby cenlfy that the foregomg ResolutIon No. 62 (HAS) was duly adopted at a meetmg of the Housmg ComnnsslOn held on the 12th day of April, 1994 by the following vote Ayes: CommiSSIOners. Abdo. Genser, Greenberg, Holbrook. Olsen, Rosenstem. Vazquez Noes CommissIOners. None Abstam: COffirnISSIOners None Absent ComrmsslOners. None A TrEST / /'/r ~ /y~ brt~ ~ ~ SecretaI;Y { ~- -