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SR-407-006 (2) \. . . ~or-ot:J6 1111 -I NOV 1 0 1987 C/ED:HSG:CR:jt Housing Authority Meeting: November 10, 1987 Santa Monica,CA TO: Housing Authority FROM: Housing Authority Staff SUBJECT: Amendment to Cooperation Agreement by and between the Housing Authority of the city of Santa Monica and the Housing Authority of the County of Los Angeles INTRODUCTION This report recommends that Housing Authority authorize the Ex- ecutive Director to amend the existing Cooperation Agreement for the Section 8 Moderate Rehabilitation Program, to increase the total number of units authorized from 50 to 100. BACKGROUND On November 9, 1981 the city Council, acting as the Housing Au- thority, authorized the execution of a Cooperation Agreement by and between the City Housing Authority and the Housing Authority of the County of Los Angeles for the Section 8 Moderate Rehabilitation Program. The Agreement authorized the Housing Authority of the County of Los Angeles to act as the agent of the city1s Housing Authority in the operation of the Section 8 Moder- ate Rehabilitation Program. The Section 8 Moderate Rehabilita- tion Program is similar to the Section 8 Existing Program. The Program provides assistance to the tenant residing in a unit rehabilitated under the program, and the tenant pays no more than 30% of their income for rent. The fair market rents established for the Moderate Rehabilitation Program are higher than those in - 1 - NA -I NOv 1 0 1981 l, . . the section 8 Existing Program in order to provide the owner with sufficient funds to finance the costs of rehabilitating the units. To date forty (40) units in five properties have been assisted under this program in Santa Monica. The following discusses the need for amending the cooperation Agreement at this time. DISCUSSION On October 15, 1987, the U. S. Department of Housing and Urban Development (HUD) issued a Notice of Fund Availability for the section 8 Moderate Rehabilitation Program to be used for single Room Occupancy Dwellings for Homeless Individuals as authorized under the stewart B. McKinney Homeless Assistance Act. Under this Program HUD will fund applications from Housing Authorities with proven experience and capacity, and demonstrated need for the assistance, to undertake and carry out the program. A total of $35 million representing approximately 600 to 800 units is available nationwide. In order for the city to successfully participate under this Pro- gram it will be necessary to work with the County of Los Angeles Housing Authority, and to amend the Cooperation Agreement. As the city's Housing Authority has never administered a Section 8 Moderate Rehabilitation Program the probability of receiving an allocation is slim. However, if the city's Housing Authority participates with the County Housing Authority there is a higher - 2 - .~ . . . - probability that the City will receive an allocation. Two poten- tial sites have been identified for participation under this pro- gram, representing approximately 36 units. As only contract au- thority for 10 units remains on the Agreement, an amendment to increase that number is required. FINANCIAL/BUDGETARY IMPACTS There will be no financial or budgetary impacts as a result of the actions recommended in this report. RECOMMENDATION It is recommended that the Housing Authority authorize the Execu- tive Director to execute an amendment to the Cooperation Agree- ment to authorize contract authority for 100 units under the Sec- tion 8 Moderate Rehabilitation Program, and to execute any and all documents necessary to submit an application for funding under the Section 8 Moderate Rehabilitation Program. Prepared By: Candy Rupp Housing Program Manger Department of Community & Economic Development - 3 -