SR-407-006 (18)
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NOV 2 4 1981
Santa Monica, Cal ifornia, NoverPber 9, 1981
TO Housing Authority
FROIl City Sta ff
SUBJECT' Proposed Amendment to Section 8 Annual Contributions Contract
In trod uc t i on
On February 10, 198i, the City submitted an appl icatlon to HUD for forty-four (44)
additional Section 8 EXisting units
Our application was approved on July 6, 1981.
In order to effect the increase in the nUMber of households which can be served
by the program, it will be necessary to aMend the current Annual Contributions
Contract
There are four (4) documents involved in the amendment process (1) "Master Se..::tlon
8 Annual ContributIOns Contractll; (2) "Part 1 of the Annual Contributio'1s Contract"; (})
"Terms and Conditions Constituting Part II of the Annual Contribuiloils Contract",
and (4) "Resolution Authorizing Execution of Section 8 Annual Con Ibutions ContrcJct
No. SF-520 Including Project Number CA16-Elll-Q06 and Pro\ldlng ror the Deposit
of Mon i es Pu rs uan t to a Gene ra I Depos ita ry Ag reemen t. II I he City A... to rney ha s
reViewed each ele~ent of the Annual Contributions Contract and has no ~dification
to recomo.:end.
The a~endment '~ill increase the nunber of units whIch can be assisted in the program
from 445 to 489. The current and future distribution of Santa Monica's Section 8
allocations by household type and number of bedrooms IS as follQl,^'s.
1-1 A - ~
NOV 2 4 1981
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HousIng Authority
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Nove-fiber 9, 1981
Total Allocation To Date New Allocation Total
Elderly - Family Elderly - Family Elderly - Family
Single 45 0 0 0 45 0
1 Bedroom 199 0 29 0 228 0
2 Bedroom 25 159 D 12 25 171
3 Bedroom 0 13 0 3 0 16
4 Bedroom 0 4 0 0 0 4
TOTAL 269 176 29 15 298 191
Rec:ommenda t ion
It is recom~ended that the Housing Authority.
1. Adopt the attached resolution authorizing execution of the Annual Contributions
Contract and extending the current General Depositary Agreenent;
2. Approve the Master, Part 1 and Part I I of the Annual Contributions Contract
and Instruct the Chairperson to execute the Master and Part I.
Prepared by' Mindy Leiter~an
ML IT'h
Attachf'lents
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U. S. DEPARTIIENT OF HOUSI~G AND URBAN DEVELOPMENT
SECTION 8 HOUSING ASSISTA~GE PA~ENTS PROGRAM
Terms and Cond~tions Co~st~tuting Part II or the
Annual Contr~butions Contract
EXISTI~G HOUSING AND ~ODE~~TE REHABILITATIO~
Master Sect~on 8 ACC ~umber
SF,...52Q
2.1. Deflnlt1ons.
(a) W1th the exception of paragraphs (b) and (c). tpe applicable Section 8
regulatlons shall deflne the ter~s used in th1S ACC.
(b)
"ProJec t Rece1pts" WJ.. th
Contrlbutlons payable under
J..f any. accruJ..ng to the
ProJect.
respect to each Project means the Anpual
this ACC and all other receJ..pts under thlS ACe.
PHA from. out of. or 1n connection with the
(c) "Project ExperdJ..tures" wlth respect to each Project means all costs
allowable under Part r or thls Ace. w1th respect to the ProJect.
2.2. LO~ER-I~CO~f HOCSI~G US2: CO~PLIA~CE wITH ACT. REGULATIO~S, .~~D H[D-PRESCRI3~D
FC?~\~S _
The PHA shall use the Annual Gontributlon solely for the purpose of provldlng
decent. safe and san1tary dwelllngs for Faml11es 1n compllarrce with all
~P?llcable provls1ons of the Act and all related regulatlollS lSSU~C .ron tL.~e to
tJ..me. The PHA also agrees to use all HUD-prescribed forn., l.ncluQ.J.f g tre
Agreement and Contract.
2.3. ELIGIBILITY ~D A}10U~T OF HOUSI~G ASSIST~~CE PAY}1E~TS.
(a) The PHA shall comply wlth the Income Limlts estab11shed by HUD and With tre
requJ..rements of HUD pursuant to Section 8(c)(7) of the Act that at J2ast 30
percent of the Families asslsted in all its Projects under lts Master
Section 8 Ace shall be Very Low-Income Fa~ll1es.
(b) The PHA shall comply or assure compl1ance w1th the sCMedules and crltetJ..a
establlshed by HUD with respect to the amounts of bouslng asslstar.ce
payments made on behalf of Fa~1l1es.
(c)
The PHA shall make
lnco~e. co~position.
expenses of Faml11es
for the purpose of
appl1cable schedules
Famlly and the amount
or cause to be made perlod1c reexaminatl0p.~ of the
and exterrt of exceptlonal ~ed1cal or other unusual
for whom hous1ng aSs1stance pa~ents are beJ..ng wade.
conflrnlng or adjUst1ng. 1n accordance w~th the
estab11shed by HUD. the amount of rent payable by the
of houslng assistance payment.
(d) The PHA shall determine. as part of lts annual lnspectlon and at such otber
times as 1t deems approprlate. whether an adjustment is requ1red in the
Allowance for UtJ..b.t1es and Other Servlces appllcable to tbe dwelllng unlt.
If the PHA deterMines that an adjustment should be ~ade. the PHA shall
Pm'lousEdltlOnsObsolete Page 1 of 14 HUD-52520C CSUPP)(lO/79)
( b)
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The PHA shall comply w~~h all
C~vl1 Rights Act of 1968, and
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reaUlrecents ~mposed by Tltle VIII of ere
any related rules and regulatlons.
(c) The PSA shall not, on account of creed or sex, d~scri~~nate ~n the sale,
leas~ng, rental or other dl5pos~tlon or hous~~g or related fac~l~tles
(~nclud~ng land) included ~n any Pro~ect or in the use or occupancy of
~t, nor deny to any Fam~ly the opportunlty to apply for such houslng,
nor deny any ellgible appllcant the opportunlty to lease or rent any
dwelllng in any such housing suitable to ~ts needs. ~o person shall
auto~at~cally be excluded from par~~cipatlon ~n or be denied t,e
benef~ts of the Houslng Assistance Payments Program because of
membershlP ~n a class such as unrnarrled mothers, reclp~ents of publ~c
ass~stance, handlcapped persons, etc.
(d) In accordance with any rules and regulatlons issued by HL~ pursuant to
Section 504 of the Rehab~litatlon Act of 1973, as amended, the PHA (1)
shall not dlscrlmlnate agalnst any person on the bas~s of handicap and
(2) shall cause to be incorporated into all contracts executed ~n
connect~on W1th this Project a provls10n requlr~ng compliance with rules
and regulations lssued pursuant to Section 504.
2.6. EQU AI. E:1PLOn1E~T OPPORTUNITY.
(a) (1) The PHA shall not dlscrlminate agalnst any ecployee or appl~cant :or
employment because of race, color, creed, religion, sex, handicap or
national orlgln. The PSA shall take affirnatlve act~on to ensure that
applicnnts are employed, and that employees are treated dur~ng
employment, without regard to race, color, creed, rel~glon, sex,
hand~cap or nat~onal origln. Such action shall include, but not be
limited to, the folloWlng: employment, upgradlng, demotion, or
transfer; recruitment or recrult~~nt advert~slng; layoff or termlnatlcn;
rates of payor other fOl~S of compensation; and selectlon for tra~n~ng,
including apprenticeship. (2) The PHA agrees to post in consplcuouS
places, available to employees ~nd applicants for employment, notlces to
be prov~ded by HOD setting forth the provislons of this non-
discriminat~on clause. The PHA will in all solicitatlons or
advertisements for employees placed by or on behalf of the PHA state
that all qualified appllcants w~ll receive consideration for employmen~
without regard to race, color, creed, religion, sex, handicap or
natlonal orig1n. The PHA will incorporate the foregoing require~ents or
this paragraph in all of its contracts for project work, except
contracts for standard commercial supplies or raw ~aterials~ a~d w~~l
require all of ~ts contractors for such work to ~ncorporate such
requirements in all subcontracts for Project work.
(b) 1/(1) The PHA shall incorporate or cause to be lncorporated lnto any
contract for construct1on work, or mod~flcatlon thereof, as defined ~n
the regulations of the Secretary of Labor at 41 CFR, Chapter 60, which
is to be performed pursuant to thlS contract, the follo~ng Squal
Opportun1ty clause:
1( Only appl~cable to constructlon contracts ~ore than SlO,COO.
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(G) The contractor ~11 ~nclude the port~on of the sentence lrnmediately
preceding Paragraph (A) and the ?rOV1Slons of Paragraphs CA) throug~ (G)
ln every subcontract or purchase order unless exempted by the rules,
regulatlons, or orders of the Secretary of Labor lssued pursuant to
Section 204 or Executlve Order No. 11246 of September 24, 1965, so that
such prOV1Slons will be blndlng upon each subcontractor or vendor. The
contractor Wlll take such actlon wlth respect to any subcontractor or
purchase order as ~ay be dlrected by the Secretary of Labor as a means
of enforclng such provlSlons 1ncluding sanctlons for noncompl1ance:
Provided, however, that 1n the event a contractor becomes lnvo1ved in,
or is threatened W1th, 11tigatlon with a subcontractor or vendor as a
result or such directlon by che Government, the contractor nay request
the unlted States to enter ~nto such litlgat~oa to protect the lnteres:~
of the United States."
(2) The PHA agrees t~at it ~~11 asslst and cooperate actlvely ~ith HL~ and
the Secretary of Labor ~n obta1nlng the compllance of contractors and
subcontractors wlth the Equal Opportun1ty clause and the rules,
regulatlons, and relevant orders of the Secretary of Labor, that it wl11
furn1sh HL~ and the Secretary of Labor such informat~on as they may
requlre for the supervlsion of such compliance, and tbat lt wl11
otherw~se asslst HL~ ia the d~scb~rge of BUD's prlmary responslbllicy
for securing compllance.
(3) T~e PHA further agrees that it will rerrain from entering ~nto any
contract or :ontract moolf1cat1on subject to Executlve Order ~o. 11246
of September 24, 1965, wlth a contractor debarred from, or who has not
demonstrated eliglbility for, Government contracts and Federally
assisted construction contracts pursuant to the Execut1ve Order and Wlll
carry Out such sanct~ons and penalties for vlolatlon of the Equal
Opportunity clause a$ may be imposed upon contractors and subcontractors
by Hl~ or the Secretary of Labor pursuant to Part II, Subpart D of the
Executive Order.
4.7. TRAININGt EMPLO~ENT, &~D CONTRACTISG OPPORTUNITIES FOR BUSINESSES AND LOwER
INCOME PERSONS. ~I
(a) The project ass~sted under th~s Ace is subject to the requ~rements 0:
Section 3 of the Hous~ng and Urban Development Act of 1968, as amended,
12 U.S.C. 1701u. Sectlon 3 requlres that, to the greatest extenc
feas~ble, opportunities for tralnlng and ernplo}~ent be glven lower
income res~dents of the Project area and contracts for wor~ 10
connection with the Project be awarded to buslness concerns WhlCh are
located in, or owned in substantlal part by persons resldlng In, t~e
area of the ProJect.
(0) ~ot~~thstandlng any other prOV1S1on of thlS ACe, the ?HA shall carry out
the provisions of Section 3 and the regulatlons ~ssued by H~D as set
forth 1n 24 CFR, Part 135 and all app1~cable rules and orders Lssued
2/ Only appl~cable to work done under an Agre~ment or Contract 1: che Contract
Rents under the Contract, over the ~ax~~um te~ of the Contract, are ~ore than
5500,000.
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(b) Clean Alr ~ct and Federal Water Pollutlon Control Act. 3/ The PEA sha~l
lncO~Dorate or cause to be lncorporated, into any contract for ~oderate
rehaOllltatlon, sucn clause or clauses as HL~ requlres for compllance
with t~e regulations lssued by the Envlronmental Protection Agency
pursuant to the Clean \ir Act, as amended, the Federal water Pollutlon
Control Act, as amended, and Executive Order 11738. The PHA shall
cooperate with HUD In tbe conductlng of compllance reVleWS pursuar.t to
these Acts and regulatlons.
(c) The PHA agrees to comply wlth HUD requlrements under the Flood Dlsaster
Protection Act of 1973.
2.10 LABOR ST~~DARDS
The PHA shall incor?orate or cause to be incor?orated into any contract for
moderate rehabllltatlon of ~ine or more assisted dwell~ng unlts, such clause
or clauses as are reaulred by BUD for compliance with its regulat~ons issued
pursuant: to the Copeland Act, the Dav~s-gacon Act, and the Contract 'riorl(
Hours and Safety Standards Act. The PHA shall cooperate wlth nUD ~n t~e
conducting of complIance reviews pursuant to these Acts and regulations.
2.11 ESTI~A~~S OF REQUIRED ANNUAL CONTRI3UTI0~
The FHA shall from time to ti~e subrnlt:
contr~bution at such times and in such
estimates and any revisions submltted under
approval.
to
HL~ estimates of requ~red
as HUD may requ:.re. All
Sect~on are subject to HL~
fa r::n
this
2.1~ I~SUR&~CE k\u :ID~LITY BO~D COVERAGE
For purposes of protect~on against hazards arlslng out of or ~n conn~ction
wlth the ad~lnistrative actlvltles of the PHA in carry~ng out the PrJJ~ct.
the PHA shall carry adequate (a) fldelity bond coverage of lts offlc~rs
agents, or employees handling cash or authorlzed to slgn checks or ~ert~ ~
vouchers and (b) insurance coverage to meet any requlrements of State and
local law.
2.13 BOOKS OF ACCOrNT ~~D RECORDS: REPOR:S
(a) The PRA shall maintain comulete and acc~rate books of account and
records, as ReD may prescr~be from ti~e to tlme i~ connection ~lth t~e
ProJects, includiag records ~hich per~lt a speedy and effectlve aud~t,
and Wlll among other thlngs fully dlsclose the amount and the
dlSposit~on by the PHA of the Annual Contrloutlons and otber Project
ReceIpts, If any.
3/ Only appllcable If the Contract Re~ts, over the ~axl~um ter~ of :he Contract,
are more than S100,OOO.
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(3 )
.~ General Deposltary Agreements~d Savlngs Deposltary Agreenents
are collectlvely called the "Depositary Agreement." All !Janks,
savlngs and loan instltut1ons, and credlt unions are collectlvely
called the "Depositary'"
(4 )
The DeDosltary Agreement shall be 1n the form prescrlbed or
approved by HL~ for the particular type of Depositary. The
Depositary shall be. and continue to be, a ~ember of the ?ederal
Deposlt Insurance Carporatlon, the Federal Savings and Loan
Insurance Corporatlon, or ~he ~at~onal Credlt Union Share lns~rance
Fund, as the case ~ay be.
(5) Immedlately upon the execution of any Depos1tary Agreement, the PHA
shall furnlsh to HL~ such executed or conformed caples as ~D may
require.
(6) No Depositary Agreement shall be te~inated except after 30 days
written notice to HDD.
(b) The pp~~ shall depos1t promptly w1th the Depository, under the ter~s of
the Depositary Agreement, all Project Receipts pursuant to this ACC.
(c) The PHA
for (1)
and (2 )
shall be
file in
whlch the
may wit~draw monies pursuant to the Deposltary Agreeme~t only
payments pursuant to the Hou91ng Assistance Payoents Contract,
other purposes specifically approved by HOD. No Wlthd~awals
~ade except 10 accordance w~th a voucher or vouchers then on
the off1ce or the PHA stating 10 proper detall the purpose for
Wlthdrawal is made.
(d) If HUD makes a determ1nat1on, after not1ce to the PHA glv~ng lt a
reasonable opportun1ty to take corrective action. that the PHA 1S 1n
SJbstant1aL Default or if HUn deternll.nes that the PHA has made any
fraudulent or Wlllful ~isrepresentatlon of any material fact 10 any or
the do(uments or data submltted to HL~ pursuant to thlS ACC or 1n any
document or data subm1tted to HUD as a basis for thlS ACC or as an
inducement to HL~ to enter into thlS ACe, HUD shall have tre rlght to
(1) give notlce of the determ1nat1on to any Depos1tary whJ.ch holds any
mon1es pursuant to the Deposltary Agreement and (2) requ1re the
Depositary. on the basis of such notJ.ce, to refuse to pernlt any
withdrawals of such monies. However, upon the curlng of such Default,
HUD shall promptly rescind such notice and requlrement.
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cJllks that ~he Agreement ~s tIl blnri~ng upon the ?EA for any
reason, HUD ~ay, after not1ce to the PHA glv1Pg 1t a reasonable
opportun1:y to take correct1ve action, declare a Substan:lal
Default under the ACe. where HL~ so determines, lt ~ay assu~e tre
PHA's r1ght5 and obl1gations under the Agreement and carry out :he
obl1gatlons of the PHA under the Agree~ent, lncludl~g ~re
obligat~on to enter lnto the Contract.
(2) If the PHA falls to comply wlth the Contract w1tn the O"Nner, or :r
the Contract lS ~elci to be vOld, v01cable or ultra Vlres, or If t~e
power or rlght of the FHA to enter lnto the Co~tract 1S drawn i~to
auestlon in any legal proceed1~g, or 1: the P~A asser~s or cla~m3
that the Contract lS ITot olndlng upon the P~A for any reason, EG~
may, after not1ce to the PHA glvlng 1t a reasonable opDortunlty to
take corrective action, declare a Substa~tial Default under ~h15
ACe. Where HUD so determlae5, lt shall bave the r~g~t to assu~e
the FHA's r1g~ts and obligat1ons under the Contract, perfo~ t~e
obllgatlons and enforce the rlghts of the PHA, and exerClse suc~
other powers as HUD ~ay have to cure the Default. whet~er or ~ot
HUD elects to proceed In thls ~anner) HUD shall, If ~t deter~l~es
that the Owner lS not In default, contlnue for the duration of the
Contract to pay Annual Contrlbutlons for the pur~ose or ~ak~ng
houslng assistance payments with resnect to dw~lllng UTIlts under
the Contract.
(3) All rights and obllgatlons or the PHA assumed by aLu ~ursuant to
tnls paragraph (a) wlll be retarped as constltucec at the t1~e of
such return (1) when HL~ is satlsf1ed that all defaults have ~een
cured and that the PrcJect will thereafter be aam1nlstereG 13
accordance wlth all ap?llCable requlrements, or (ll) whei the
Cont~act 1~ ~t Sl end, whJ hever occurs sooner.
(4) The provlSlons 0' thlS paragraph (a) a~e made wlth, and/or for the
benef~ t of, the Cwne. the PHA (wile::"e :..t is the lender al,d tr.en
only In its capacit)- a' 1.1nder), or the Owller's other ass1g:u...es, ::..f
any, who \01111 l.ave .~~en spec1flcally approved by the PHA or1or to
the asslgnment. If ~ parties are not In default, they ~ay, to
enforce the per=or.nancL of these provls1ons (1) demand that ~v~,
after notlce to the PHA givlng It a reasonable opportun~ty to take
correctlve act1on, ~ake a determlnatlon whether a Substant~al
Default exists under paragraph (a)(l) or (a)(2) of :h1S Sec:1on,
(ll) If QUD deter~lnes that a Substantlal Default eXlsts, de~aad
that HL~ take actlon as authorlzed ::..n paragraph (a)(1) or (a)(2),
and (111) proceed agalnst BUD by SUlt at law or equ1ty.
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(2 )
Upon a deter~~nat~on by ~he ?HA that a deraul: has occurred, ere
p~~ shall nQt~fy the Owner, w~th a copy to HUD of (1) the nature of
the default, (2) the actIons requIred to ~e taken anG t~e remec~e5
to be applIed on account of the defaul~ (~ncludlng actIons jy the
Ow~er to cure the default, and, where approprIate I abatement of
hous~ng aSsIstance payments in whole or in part and recovery of
overpayments). and (3) the time withIn WhICh the Owner sha:l
respond w1th a showing that he has taken all the actions requIred
of hIm. If the Owner falls to respond or take actlon to t~e
satisfactIon of the pqA and HUD, the PHA shall have the rIght to
terminate the Contract 1n whole or in part or take other corrective
actIon to achIeve complIance, In ~ts dIscretion or as dlrected by
HUD.
(3) (The provis~ons of thIS ?aragraph c(3) shall apply only If the PHA
is the lender.) Notw~thstandlng any other prOV1Slons of thlS
Contract, In the event aUD dete~lnes that the Cwner IS ~n defau:t
of hlS obligatlons under the Contract, HUD shall have the rlg~t,
after not~ce to the Owner and the PEA g~ving them a reasonable
opportunlty to take cor~ectlve actlont to abate or ter~lnate
houslng assistance payments and recover overpayments 1n accordance
wlth the terms of the Contract. In the event HL~ takes any actlon
under thlS Sectlon. the Owner and the PHA hereby expressly agree t~
recognIze the rlghts or HUD to the same extent as If the act10n
were taken by the FHA. HUn shall not have the r~ght to te~lnate
the Contract except by proceeding in accordance with ?aragraph e(2)
of this Secnon.
2.17 RE~EDIES NOT EXCLUSIVE ~D ~ON-WAIVER OF REMEDIES.
The ava1lablllty of any remed} provldc~ for In this ACe or in the ~ontract
shall not preclude the exerC1se of any other remed; under th1S ACe or the
Contract or under any provlsion~ of ~aw, nor shall uny action taken 1n ;r~
exerClse of any remedy be de~med a .alver of any other rlghts o~ remedles.
Fa11ure to exercise any rIght ~r re,~dy shall not constltute a walver of the
r1ght to exerCIse that or any ~ther r~, ~_ or remedy at any t~me.
2.18 INTERESTS OF MEXSERS, OFFICERS/ OR EMPLOYEES OF PHA/ ~~IBERS OF LOCAL
GOVE~~ING BODY/ OR OT~ER PUBLIC OFFICIALS.
(a) NeIther the PHA nor any of ~ts contractors or the~r subcontractors shall
enter into any contract, subcontract, or arrangeffient, in connectlon with
any Project ~n which any of the folloWlng classes of persons has an
interest I d~rect or indirect, durIng tenure or for one year t~ereafter~
(1) any member or off~cer of the PHA except these members or officers
who have an interest In the Section 8 Program by reason of tbeir
tenancy In a Section unIt, or
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