SR-407-006 (15)
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APR - 8 1966
C/ED: HD: JG: j t
Housing Authority Meeting 4/8/86
TO:
Housing Authority
FROM:
city staff
SUBJECT:
Recommendation to Adopt Resolutions Approving Revi-
sion of Annual contributions Contracts for the Sec-
tion 8 Housing Certificate and Housing Voucher
Programs
INTRODUCTION
This report trans~its for adoption two resolutions approving new
Annual Contributions Contracts for the section 8 Housing Certifi-
cate and Housing Voucher Programs. The report recommends that
the Housing Authority authorize the Executive Secretary to ex-
ecute the contracts with the u.S. Department of Housing and Urban
Development.
These contracts will supersede other previously
executed contracts.
BACKGROUND
The Housing Authority entered into an Annual contributions Con-
tract (ACC) with the u.s. Department of Housing and Urban
Development (HUD) in 1976. This ACC governs the operations of
the Section 8 Housing Assistance Payments Program.
The ACC is
amended from time to time as new project allocations for addi-
tional units are received.
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Description of Revised Contract Language
HUD has revised the language of the ACC's and is requiring all
Housing Authorities to approve and execute new ACC's for the Sec-
tion 8 Housing Certificate and Housing Voucher Programs.
The new ACC limits HUD's discretion regarding the establishment
and maintenance of a reserve fund for the Section 8 Program; the
new Ace requires HUD to establish such an account, while the ex-
isting ACC simply allows HUD to do so where necessary. The new
ACC also reduces HUD's discretion in recapturing funds from local
Housing Authority programs. It also allows local Housing Au-
thorities to again make program expenditures not specified in
their annual budgets, but allowable under the ACC, without seek-
ing prior approval from BUD. In all other respects the new ACC
is substantially the same as the one executed by the Housing Au-
thority in 1976. These changes are all advantageous to the Hous-
ing Authority, and are the result of extensive lobbying activi-
ties by local Housing Authorities and the National Association of
Housing and Redevelopment Officials (NAHRO). The attached
resolution approving the new ACC for the Housing Certificate Pro-
gram will meet HUD' s requirement to re-execute the Housing Au-
thority's contract.
Increase in Contract Amount for Housing Voucher Program
HUD has awarded Santa Monica's Housing Voucher Program another
twenty-nine (29) vouchers with an additional contract authority
of $166,721 in support of HUD's Rental Rehabilitation Program.
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The new ACC to be executed for the Housing Voucher Program both
includes the new vouchers and contains the changes in contract
language described above. The attached resolution approving the
new ACC for the Section 8 Housing Voucher Program will authorize
the Executive Secretary to accept the additional vouchers and re-
execute the Ace in its revised and updated form, as required by
HUD. This is a separate resolution because the voucher component
of the section S Program is funded separately by HUD.
FINANCIAL/BUDGETARY IMPACT
According to the existing contract between the Housing Authority
of Santa Monica and the Housing Authority of the County of Los
Angeles, all program funds under the ACC's will be paid by HUD
directly to the Housing Authority of the County of Los Angeles
for program administration. There is no financial or budgetary
impact anticipated as a result of these actions.
RECOMMENDATION
It is recommended that the Housing Authority:
(1) Adopt the attached resolution approving the Superseding Part
I and new Part II of Section S Housing Certificate Program ACC
No. SF520 for the Section S Existing Certificate Program; and
(2) Adopt the resolution approving the Superseding Part I and new
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Part II of Section a Housing Voucher Program ACC No. SF520V for
the Section a Voucher Program.
Prepared by: Jack Gardner, Housing Analyst
Department of community and Economic Development
Attachments: (l) Resolution Authorizing Execution of superseding
Annual contributions Contract No. SF520
(2) Resolution Authorizing Execution of Superseding
Annual Contributions Contract No. SF520V
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