SR-407-006 (4)
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JUl 2 A J990
C/ED:HD:SW:ds
Housing Authority Meeting: 7 /24 / 90
Santa Monica, California
TO: Housing Authority
FROM: City staff
SUBJECT: Resolution Approving Revised section 8 Housing
Certificate Program Annual Contributions Contract
INTRODUCTION
This report recommends that the Housing Authority adopt a
resolution approving the amended Consolidated Annual Contributions
Contract (CACC) for the section 8 certificate program, 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.
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JUL 2 ,1 1990
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On the Certificate program an eligible tenant w~ll always pay 30%
of their income towards the rent regardless of the total rent on
the unit. The maX1mum 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 subsidy
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 HUD 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) with the D.S Department of Housing and Urban Development in
March, 1976. The ACC governs the operations of the section 8
Housing Certificate Program and details the budget authority
available from MUD. The original ACC was for a term of fifteen
years. The Ace is amended from time to time as required by MUD.
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DISCUSSION
The original ACC is due to expire on March 29, 1991. Federal
regulations prohibit housing authorities from entering into any new
contracts if there is less than one full year remaining on the Ace.
In order to allow the Santa Monica Housing Authority to continue
to put units under contract without violating federal regulations,
HUD has split the ACC into two components. Exhibit I lists those
"projects" for which federal funds had been appropriated prior to
fiscal year 1988. (HUD classifies individual allocations as
"projects", even though the Santa Monica program emphasizes
scattered site leasing of units throughout the City). The proJects
listed in Exhibit I expire on December 28, 1993. Exhibit II
contains those projects which have 1991 expiration dates (as well
as an additional project which does not expire until 1994).
HUD has verbally notified staff that project CA16-E111-901, 001,
and 002 (all three of which expire in 1991) will be renewed once
Congress approves the federal budget authority.
This technical contract modification will serve the purpose of
extending seven of our nine projects on the current CACC. It will
also allow BUD to easily replace the projects that expire in 1991
without necessitating renewal of all 559 units at one time. The
total amount of contract authority is not changed by this contract
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modiflcation.
BUDGET/FINANCIAL IMPACT
Payments to Santa Monica Housing Authority I s Section 8 Program
certlficate and voucher holders are budgeted at account number 12-
700-695-00000-7734-00000.
The proposed amendments to the
Certificate Program Consolidated Annual Contributions Contract
separate those projects which requlre reauthorization of Federal
funding in 1990-91 from those which do not, to facilitate the
reauthorization process. Therefore, there is no need to modify the
Housing Authorlty's 1990-91 Adopted Budget at this time.
RECOMMENDATION
It is recommended that the Housing Authority adopt the attached
resolution approving the Consolidated Annual contributions Contract
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: Exhibit I
Exhibit II
Resolution
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JUL 2 4 199D
CE/D:HD:SW:SC
Housing Authority Meeting: 7/24/90
Santa Monica, California
TO:
Housing Authority
FROM:
City staff
SUBJECT:
Resolution Approving the Submission of an Application
for 72 Houslng Assistance Vouchers and certificates.
INTRODUCTION
The Department of Housing and Urban Development (HUD) thru a Notice
of Funding Availability (NOFA) appearing in the June 11, 1990
Federal Register has informed housing authorities regarding the
availabillty of new Vouchers and Certificates for the section 8
Program.
This report transmits for adoption a resolution
authorizing the submission of an application for 36 certiflcates
and 36 Vouchers.
BACKGROUND
The Santa Monica Housing Authority administers two types of federal
rental assistance programs: (1) the Section 8 Housing certificates
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.
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JUL 2 1 1990
.
.
On the certificate program an eligible tenant will always pay 30%
of their income towards the rent irregardless of the total rent on
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 subsidy
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 HOD has
made more Vouchers available than Certificates. The Santa Monica
Housing Authority currently has an allocation of 559 Certificates
and 167 Vouchers.
BUD has changed the method in which applications for Section 8
certificates/Vouchers are processed. All housing authorities can
apply for Certificates and Vouchers. There are 3,600
Certificates/Vouchers available in the Los Angeles area office of
HUD. Previously, HUD had 1nvited only certain housing author1ties
to apply.
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The Santa Monica Housing Authority currently has 708 units leased.
This represents over 97% of our allocation of 726 units. The
current waiting list for available subsidies exceeds 6,000
households.
Under the section 8 Program and local ordinances, participants pay
30% of their adjusted income as their share of the rent. The
Housing Authority executes a Housing Assistance payments Contract
with the owner after approving the lease and determining by
inspection that the unit complies with housing quality standards.
DISCUSSION
The maximum number of Vouchers and Certificates that can be app11ed
for are 10% of an authority's current allocation. santa Monica
currently has an allocation of 726 units; therefore, 72 is the
maximum we can apply for at this time. The award of these Vouchers
and certificates is based on a competitive criteria including:
1. Housing Authority administrative capability;
2. Previous funding level~
3. Percentage of persons below the poverty level according
to the 1980 census;
4. Participation in an Operation Bootstrap program which
includes career and personal counseling;
5. Policies that target the homeless population; and
6. Local initiatives that increase housing opportunities.
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Initial applications are due on July 26, 1990. The attached
resolution must be forwarded to HUD with the formal application.
staff believes that the Housing Authority has a good opportunity
to receive additional Vouchers and Certificates. The Authority
should score high on crlteria 1, 5 and 6. Contingent upon receipt
of an allocation, the Housing Authority will need to enter lnto an
Annual Contract with HUD. The ACC governs the use of the new
allocation.
This item has been scheduled for action at the July 19, 1990
Housing Commission meeting.
FINANCIAL/BUDGETARY IMPACT
Payments to Santa Monica Housing Authority Section 8 program
certificates and Voucher holders are budgeted at account number 12-
700-695-00000-7734-00000. The adopted budget for FY 1990-91
includes an anticipated 54 unit increase. Further, at any time,
only about 98% of currently allocated un1ts are leased. Due to
these budget factors and given the lead time necessary to secure
final federal approval and to implement leasing of the additional
units, staff believes that there is sufficient existing
appropriation authority to accommodate the requested additional 72
units.
RECOMMENDATION
It is recommended that the Housing Authority adopt the attached
resolution authorizing the submission of the application for
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additional Vouchers and Certificates.
Prepared by: Nancy West, Housing Program Manager
Steve Wagner, Housing Coordinator
Department of Commun1ty and EconomlC
Development
Attachments: Resolution