SR-407-006 (9)
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C/ED:HD:SW:sc
Housing Authority Meeting 2/28/89
Santa Monica, California
TO: Housing Authority
FROM: city staff
SUBJECT: Recommendation to Adopt Resolution Approving the
Submission of an Application for 95 Housing Assistance
Vouchers and Authorizing the Executive Director to
Execute Annual contributions Contract (ACC) if the
Application is Approved
INTRODUCTION
The Department of Housing and Urban Development (RUD) has invited
the City of Santa Monica Housing Authorlty (Housing Authority) to
apply for 95 additional vouchers.
This report transmits for
adoption a resolution authorizing the submission of the application
for these 95 vouchers.
Also, the resolution authorizes the
Executive Director of the Housing Authority to execute the Annual
contributions Contract (ACC) upon the approval of the application.
BACKGROUND
HUD has invited the Housing Authority to apply for 95 Housing
Assistance Vouchers with an annual budget authority of $715,635.
The voucher program is a federally funded rental assistance program
under the Section 8 Existing Houslng Program. Under this program,
the Housing Authority subsidizes a standard amount of a
particpant I S rent based on household income and size.
Under
current local ordinances, participants never pay more than 30% of
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their adjusted income as their share of the rent. The Housing
Authority executes a Housing Assistance Payments Contract with the
owner after approval of the lease and determining, by inspection,
that the unit complies with housing quality standards. The Housing
Authority currently has a voucher allocation of 68 units which are
100% utilized. The following discusses the invitation to apply
for 95 additional vouchers.
DISCUSSION
The award of vouchers is based on competitlve criteria including:
1) underfunding in relation to other localities; 2) voucher lease-
up rate; 3) projected lease up schedule.
The Housing Authority currently has a waiting list of approximately
6,000 households in need of subsidized housing. There are many
applicants who have waited over two years for assistance. If the
application is approved by HUD, the Housing Authority would have
the budget authority to subsidize rents for approximately 95
households who are in need of housing. Preference will be given
to households that are currently living in substandard housing,
paying over 50% of their income towards rent and utllities, victims
of domestic violence, and those displaced by no cause of their own
or the homeless as required by HUD program regulations. within
these preference categories, priority will be given to local
residents, with households displaced through the Ellis Act given
top priority.
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Applications are due to HOD on March 6, 1989. Staff believes that
the Housing Authority has an excellent opportunity to receive
additional vouchers. Contingent upon receipt of an allocation, the
Housing Authority will need to enter into an Annual Contributions
Contract with HUD. The ACC governs the use of the allocation and
is for a term of five years.
The Housing Commission at its February 16th meeting passed a motion
to support the submittal of this voucher application.
FINANCIAL BUDGETARY IMPACT
The contract authority of up to $715,635 from HOD under the new ACC
will cover the cost of Housing Assistance Payments and all
administrative costs involved in leasing-up the new allocation, and
would require additional budgetary authority in the following
account numbers:
Revenue:
12-905-038-000-000
12-905-039-000-000
12-700-695-000-725
12-700-695-000-734
01-700-695-000-734
$90,965
$624,670
$90,965
$624,670
($90,965)
Expenditures:
RECOMMENDATION
It is recommended that the Housing Authority:
(1) Adopt the attached resolution authorizing submission of
the application for additional vouchers and authorizing the
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Executive Director to execute the ACC upon approval of the
Housing Authority's application~
(2) Contingent upon execution of the ACC, give authorization
to increase the Housing Authority's revenue and expenditure
accounts in the amounts detailed herein on an annual basis.
Prepared by: Candy Rupp, Housing Program Manager
steve Wagner, Housing Coordinator
Department of Community and Economic Development
Attachments: Resolution
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