SR-407-006 (3)
"*-
.
.
titJ'?--006
.
J-II/-~
jUL :! 4 1990
C/ED:HD:SW:ds
Housing Authority Meeting: 7 /24 I 90
Santa Monica, callfornia
TO:
Housing Authority
FROM:
city Staff
SUBJECT:
Resolution Approving Revised section 8 Housing Voucher
Annual contributions Contract.
INTRODUCTION
This report recommends that the Housing Authority adopt a
resolution approving the amended Voucher Consolidated Annual
Contributions Contract (CACC), and authorizing the Executive
Director of the Housing Authority to execute the CACC.
BACKGROUND
The Santa Monica Housing Authority administers two types of federal
rental assistance programs: (1) the section 8 Certificate Program
and (2) the Section 8 Housing Voucher Program.
Both programs
provide assistance to participating households. As families move,
the assistance moves with them rather than being dedicated to the
units. Both are based on the tenant paying 30% of their adjusted
income as their portion of the rent.
On the Certificate program an eligible tenant will always pay 30%
of their income towards the rent regardless of the total rent on
#11 ~ ~
.J II L :2 A 1 q90
"
.
.
the unit. The maximum rent for the unit is set by the Federal
Government and the Housing Authority is required to perform a rent
reasonableness test for the area. Maximum annual increases are
also set by the Federal Government.
with a Voucher, an eligible tenant is entitled to a rental subs~dy
that is the difference between 30% of their adjusted income and a
payment standard set by the Housing Authority. The tenant can pay
more or less than 30% of their income depending on the actual rent
for the unit. The payment standards are usually adjusted annually
to provide increased tenant subsidies to offset rent increases.
The Vouchers are transferrable to any City with an active Housing
Authority to insure the greatest mobility for Section 8 applicants.
In the previous 5 years, the Federal Government, through Hun has
made more Vouchers available than certificates. The Santa Monica
Housing Authority currently has an allocation of 559 Certificates
and 167 Vouchers.
The Housing Authority entered into an Annual Contributions Contract
(ACC) for Vouchers with the U.S. Department of Housing and Urban
Development in September of 1985. The original allocation was for
a term of 5 years thru September 8, 1990.
DISCUSSION
The budget authority for the first Santa Monica Voucher allocation
is due to expire on September 8, 1990. This allocation was
.
.
previously funded for five years at an annual level of $60,786.
HUD has invited the Santa Monica Housing Authority to renew this
expiring allocation with new budget authority of $78,906 annually.
This budget authority will support the continued participation of
fifteen eligible households in the Section 8 Rental Subsidy
Program. The level of funding exceeds the original level due to
increases in the maximum allowable Federal Fair Market Rents since
1985.
BUDGET/FINANCIAL IMPACT
Payments to Santa Monica Housing Authority's Section 8 Program
Certificate and voucher holders are budgeted at 12-700-695-00000-
7734-00000. The new proposed Annual Contributions Contract
increases federal budget authority for the Santa Monica Housing
Authority's Section 8 Voucher Program to reflect increases in rents
in the local area which have been experienced in the last five
years and which are projected for the next five years. Since the
Housing Authority's FY 1990-91 budget already provides for
anticipated cost increases, approval of the proposed contract will
not require any budget action at this time.
RECOMMENDATION
It is recommended that the Housing Authority adopt the attached
resolution approving the Consolidated Annual Contributions Contract
for Vouchers and authorizing the Executive Director to execute the
CACC.
~
.
.
Prepared by: Nancy West, Housing Program Manager
steve Wagner, Housing Coordinator
Department of Community and Economic
Development
Attachments: Resolution