SR-407-006 (2)
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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
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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
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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
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