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HomeMy WebLinkAbout2007/01/23 Item 8 CITY COUNCIL AGENDA STATEMENT ~f:. (Il)' OF - - - CHULA VISTA January 23, 2007, Item.8. ITEM TITLE: RESOLUTION APPROVING A TENANT-BASED RENTAL ASSISTANCE PROGRAM AND AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR PROCESSING ACTING DIRECTOR OF CO~ITY DEVELOPMENT ~ INTERIM CITY MANAGER ,J / SUBMITTED BY: REVIEWED BY: 4/5THS VOTE: YES D NO ~ BACKGROUND The City Council recently approved the use of HUD HOME funds for a rental assistance program to help with monthly rental payments for low-income households, offering "displaced persons" a priority. Staffhas developed the program guidelines and all associated forms. At this time, Community Development staff is requesting City Council authorization to both operate the program and execute all documents necessary for processing. ENVIRONMENTAL REVIEW As required by the HOME program, an environmental review has been conducted in accordance with the National Environmental Protection Act (NEP A), and it has been determined that the development and implementation of a Rental Assistance Program is a Categorically Excluded Activity per 24CFR58.35(b). The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no further environmental review is necessary. RECOMl'1ENDA TION Adopt the resolution approving the City's operation of a Tenant-Based Rental Assistance Program and authorizing the Community Development Director, or designee, to execute all documents necessary for processing. BOARDS/COMMISSION RECOMMENDATION Not Applicable 8-1 January 23,2007, Item_ Page 2 of3 DISCUSSION On April 4, 2006 the City Council approved the use of $440,000 in HOME funds from the U.S. Department of Housing and Urban Development (HUD) for a tenant-based rental assistance program that would offer "displaced persons" a priority. The first residents to be served are qualifying displaced Jade Bay Mobilehome Park residents, who must vacate their coaches by February 28,2007 as a result of the park's recent bankruptcy. The program can assist low-income households earning at or below 80% of the Area Median Income (currently $55,200 for a family of four) with payment of their monthly rent. The tenants pay approximately 30% of their own income, and then the City pays the difference, up to the "Fair Market Rent" as determined by HUD. This program is an effective way to provide affordable housing within market rate units throughout the City. Federal regulations state that HOME rental assistance may not exceed 24 months, although it can be renewed for another 24 months if the jurisdiction allocates funds for renewal. Many lower income households may also be eligible for HUD's "Section 8" rental assistance program,which does not have a time limitation. The majority of the residents that have applied for the City's rental assistance to date have also applied for Section 8. Depending upon household income, an applicant can wait 3-5 years before receiving Section 8 assistance. It is anticipated that within the 24-48 month period of the City's HOME rental assistance program, some households will transition to either Section 8 or other affordable housing opportunities that do not have a time limitation. Community Development Staff developed program guidelines and all associated forms in accordance with HOME Grant regulations (see Tenant Handbook provided as Attachment 1). Below is a brief description of how the program will operate: I. Tenants apply for assistance as funding is available; 2. City staff will certify income and household eligibility; 3. Eligible tenants will receive informational materials and a voucher explaining the terms of the program at a tenant orientation; 4. Eligible tenants will select a unit in Chula Vista and request property owner to complete owner paperwork; 5. City staff will complete an inspection of the unit; 6. The City and the property owner will enter into a HOME Rental Assistance Contract (Attachment 2); 7. City staff will process monthly assistance payments to the property owner on behalf of the tenant, while the tenant pays their portion of the rent as well; and 8. City staff will re-certify income and household eligibility annually. The program is ready to implement and assist residents. At this time, Community Development Staff is requesting City Council authorization to operate the program as a City Program, and execute all documents necessary for processing at an administrative level. 8-2 January 23, 2007, Item_ Page 3 of3 DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(1) is not applicable to this decision. FISCAL IMPACT The appropriation of $440,000 from HOME funds was previously approved by the City Council on April 4, 2006 and was included in the Fiscal Year 2006-2007 budget. The program will serve approximately 20-30 households over a two-year period. The City Council may allocate additional funds to the program in the future to serve additional households, or extend the term of assistance. Federal funds for City staff services to run this, and other HOME programs, were previously appropriated by the City Council on December 6, 2005. ATTACHMENTS 1. Tenant Handbook 2. HOME Rental Assistance Contract Prepared by: Amanda Mills, Housing Manager, Community Development Dept. 8-3 ATTACHMENT 1 ~v~ ~ -;....----~ ~- ~- OlY OF CHUIA VISTA TENANT HANDBOOK A GUIDE FOR HOME-FUNDED TENANT BASED RENTAL ASSISTANCE PARTICIPANTS Community Development Department Housing Division City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 8-4 TABLE OF CONTENTS I. HOl'vIE Tenant Based Rental Assistance Program .......................................................1 II. Term of the HOME Voucher .................................................................................. 1 III. Determination of Housing Assistance Payment ........................................................1 A. Subsidy Standards ....................................................... ........................... ..... ............ 2 B. Payment Standards............................................................ ...................................... 2 C. Total Tenant Payment ............................................................................................3 D. Gross Rent .............................................................................................................. 3 IV. Choosing Where to Le.~se.......................................................................................4 A. Portability: ................................. ...........................................................:................. 5 V. Finding a Unit ........................................................................................................5 A. Approaching a landlord .......................................................................................... 5 VI. Submitting a Request for Tenancy Approval (RFTA) ................................................6 VII. Inspecting the Unit............................................................................................... 7 VIII. Lead.Based Paint Information ...................... ............... ...... ..... .............. ..... ...........7 IX. Equal Housing Opportunity Laws........................................................................... 8 X. Rights of the Disabled.............................................................................................8 XI. Keeping your assistance ......................................................................................... 8 XII. How to Request an Informal Hearing..................................................................... 9 Additional Briefing Packet Information: Payment Standards Utility j\.llowance Schedule A Good Place to Live Tips to Finding Rental Housing Housing Discrimination Complaint Form 8-5 1. HOME Tenant Based Rental Assistance Program HOME is authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. Program regulations are at 24 CFR Part 92. The City of Chula Vista is using HOME funds for a Tenant Based Rental Program. The concept of the HOME Tenant Based Rental Assistance Program is that the City of Chula Vista subsidizes the rental costs by applying a fi..,ed formula, and the family pays the difference between that subsidy and the amount of rent to the owner (voucher formula). There are limitations of how much the family can pay. 11,ese limitations will be e."'plained further in this handbook. The family will sign a lease agreement, which governs tenllOcy ",~th the landlord, just as they would in the private rental market. The landlord will be required to sign a Housing Assistance Payment Contract with the City of Chula Vista, which spells out the requirements of the owner has to follow. II. Term of the HOME Voucher Your HOJ\IE Voucher (coupon) will be issued on the day of your briefing. The HOME Voucher is valid for the term of ninety (90) days, which is the maximum term under our current policy. Request for e>..'tensions must be submitting prior to e>..-piration (see form in briefing packet). No e"-'tension will be granted after eA1Jiration of the voucher4 You must find a unit and submit a Request for Tenancy i\pproval \v~thin the term of the Voucher. III. Determination of Housing Assistance Payment Housing Assistance Payment (HAP) is the rent subsidy that the City of Chula Vista pays to a landlord on the tenant's behalf. There are four factors that dete1n1ine how the City of Chula Vista calculates the HAP, . Subsidy Standards . Payment Standards . Total Tenant Payment . Gross Rent T enanr Based Renml..-\ssistance Program Handbook Page 1 of9 8-6 A. Subsidy Standards The subsidy standards are used to determine. the maximum rent subsidy for the HOME Tenant Based Rental Assistance Voucher (coupon). For the putpose of determining subsidy standards, the voucher size will be assigned so tilat the head of household and his/her significant other, is allocated one bedroom. }Jl rema.ining household members are allocated one bedroom for every two family members, regardless of se:", age, or relationship of the family members. The City of Chula Vista does not determine who shares a bedroom. According to HUD, the living room may be used as a sleeping room. An unborn child or a child, of whom the family is in the process of obtaining legal custody or adoption, may be included in determining the family's subsidy standard. For families requesting reasonable accommodation due to disability, check with your Community Development Specialist. Request for live-in aide: . The live-in aide must be at least 18 years old, and provide a social security card and/or a government issued identification card. . The live-in aide will be required to sign a St.~tement of Understanding which outlines the policies governing the live-in aide status, and a Personal Declaration of residence and income information. . Contact your Community Development Speciilist to request a live-in aide. B. Payment Standards A payment standard is an amount established by tile City of Chula Vista based on HUD's published Fair Market Rents for each market area and for unit size. TI,e unit size means number of bedrooms per unit. The family mal' select a different size unit than the voucher size listed on the HOrvIE voucher (coupon). The family may choose to rent a smaller size unit as long as the unit is ",-ithin the maximum occupancy standard level under the Housing Quality Standards. HUD defines ma.'<imum occupancy standards as two persons per bedroom/sleeping room. A living room may be counted as a sleeping room. The payment standard does not necessarily equal the Rent to Owner. The payment standard is the lower of . The payment standard for the voucher SIZe listed on the HOME Voucher (coupon); or . The payment standard for the size of unit rented by the family. Tenant Based Rental Assisunce Program Handbook Page2of9 8-7 Once the payment standard is detennined, the City of Chula Vista uses the payment stand:ud to calculate the monthly housing assistance payment for a family. 111e current V ouche! Fayment Standards for the C:itv of Chula Vista is included in this briefing packet. The City uses the Housing A;'thorit)' of the County of San Diego (HACSD) utilit)' allowance schedule. HACSD administers the Section 8 Rental Assistance program in the Cit)' of Chula Vista. C. Total Tenant Payment The total tenant pa)'ment is the greater of: . 30% of the family's gross income (before taxes) after HUD regulated deductions (monthly adjusted income). . 10% of monthly gross income (before taxes ",~th no deductions). . :Minimum rent of $25.00. In most cases, Total Tenant Payment (rIP) is 30% of the family's monthly adjusted income. Adjusted income means your gross income minus the HlJD allowable deductions. D. Gross Rent Gross Rent is the rent to owner plus any utility allo,,'ance. The utility allowance is based on the utilities that the tenant is responsible for paying_(i.e. SDG&E, water, sewer, trash). The Utility Allowance Schedule is included in this briefing packet. Cable television and telephone service are not included in the utility allowance. Examples of total subsidy calculation: 1. Gross Rent less than the payment standard: :Mr. Jones finds a one-bedroom apartment with a rent to owner (contract rent) or $900.00. The apartment has gas heat and electric coolting. She is responsible to pay electricity and gas. His monthly adjusted income is $1,000.00. Her Total Tenant Payment (rIP) is $300.00 ($1,000 X 30%). Rent to Owner 5900.00 Utility i\.llowance S?7.00 Gross Rent 5927.00 $933.00 Pavment Standard TTP -$300.00 -5300.00 Total Subsidy $627.00 5693.00 Total Subsidy IS d,e lesser of the Payment or Q1:0SS rent, minus TTP. Rent to Owner 5900.00 Total Subsidy -$627.00 Citv of Chula Vista Payment to Owner Tenant Share $273.00 Tenant Payment to Owner Tenant Based Renral.-\ss1stance: Program H'andbook Page 3 of9 8-8 2. Gross Rent is more than pa~ment standard. The same familv found a one-bedroom apartment for $1,050 Rent to Owner $1,050.00 Utility Allowance $27.00 Gross Rent $1,077.00 $933.00 Payment Standard TYP -$300.00 -$300.00 Total Subsidy $777.00 $693.00 Tow Subsidy IS the lesser of the Payment or !<toss rent, minus TYP. Rent to Owner $1,050.00 ToW Subsidy -$693.00 City of Chula Vista Payment to Owner Tenant Share $357.00 Tenant Payment to Owner Affordabilii;1' Check Whenever the gross rent is grearer than the payment standard, as in example 2 above, the City of Chula VIsta must conduct an affordability test. Ibis check is done because HUD regulations prohibit fa.rnilies from paying more than 40% of their monthly adjusted income as the Total Family Contribution (rent plus utilities) at the time of initial move in. The affordability check is calculated as follows: Gross Rent $1,077.00 ToW Subsidy 5693.00 ToW Family Contribution $357.00 40% of Monthly Adjusted Income $400.00 (1,000 x 40%) Since the toW family contribution is less than 40% of the monthly adjusted income, the family passes the affordabili!y check and the City of Chula Vista can approve the unit. IV. Choosing Where to Lease The family may lease a unit anywhere in the City of Chula Vista, as long as the unit meets the Housing Quality Standards (HQS) and the rent is reasonable and comparable to unassisted units \vith similar amenities in the same general market area. A Good Place to Live booklet, which outlines some aspects of the Housing Quality Standards, is included in the briefing package. Limitations · You mal' not pay mme than 40% of your monthly-adjusted income as toW family contnbution (your share of the rent plus utility allowance). . You may not rent a unit that is currently receiving other renW assistance. . You may not rent a unit tllat is owned or controlled by a parent, grandparent, child, grandchild, or sibling of any member of your family, unless tl1e City of Chula Tenant Based Rental Assistance: Program Handbook Page 4 of9 8-9 Vista has determined that approving the unit would be a reasonable accommodation for a family member who is a person with disabilities. . Shared housing is limited to specific conditions. Please contact your Community Deyelopment Specialist A. Portability: HOlvfE Tenant Based Rental j\.ssistance applicants or participants may not utilize the portability. V. Finding a Unit The City of Chula 'list>. has included a current Ayailable Units Property Listing in this briefing packet. To obtain an updated listing, you may make your request in person or by bringing your youcher to our office or by writing/faxing your request with a copy of your youcher to the City of Chula Vista. If the City of Chula 'list>. has any listings of accessible units, we will identify them as such in our listings. There are many other resources you can rely on in finding a unit. Some of them are: . Check the local newspaper for listings of houses or apartments for rent. . Contract local real estlte agents that advertise rental units . Look for "for rent" signs when driving or taking d,e bus. . Ask your friends or neighborhood center. They may know of certain ayailable units. A. Approaching a landlord Before you Start, you may want to go over the Inspection Checklist that is included in this briefing packet. This checklist contains the items neeed in passing Housing Quality Standards (HQS). Having the knowledge of the HOME Tenant Based Rental Assistance program and the ability to articulate clearly how the program works would put the landlord at ease if he/ she has never dealt 'W-:ith the program before. As a potential tenan~ you should remember that there are often many families competing for the rental of one unit. Think from the landlord's point of view: why would be/she want to rent to you rather than someone else (whether on TBR.i\., Section 8 assis=ce or unassisted)? !I{any landlords will conduct a credit check that usually includes credit and e,-:icnon histoty. They may also ask you to fill out their own rental application. If you have a poor credit history, or have been evicted, tell the landlord at d,e beginning. Explain the situation clearly and rationally. There are landlords who Tenant Based Rental Assistance Progtam Handbook P'ge50f9 8-10 are 'W-illing to give families a second chance. More information is listed in this briefing packet: Findin" a Place to Live. Things to ask the landlord . What is the security deposit amount? It is your (tenant) responsibility to pay the deposit to the landlord. The landlotd may ask the m.....cimum deposit allowed under the State and Local laws. · Are there any house rules in addition to the lease agreement? . Is there any maintenance you are required to do yourself? An e.,ample would be yard maintenance. . What are the penalties/ charges if you pay your rent late? . Does the owner allow pets? . How are maintenance request submitted, in the event you need a repair to your unit? This information may be provided either orally or in writing. VI. Submitting a Request for Tenancy Approval (HETA) In order for the City of Chula Vista to begin the process for approving the lease for your unit, we require the following: . A completed ,and signed Request for Tenancy Approval (Two sides, required HUD form) · A Model Lease (owner may choose to use his/lier own lease and not our Model lease) . The HUD Tenancy Addendum (required attachment). · A completed and signed W-9 (the landlord will provide this to the City separately). In addition, the unit must be vacant and ready to occupy when you submit your RFTA. This does not apply if you are leasing the unit where you currendy reside. You mal' drop off the RFTA paperwork in person or you can mail it to our office. Upon receipt of the completed paperwork, the City's Community Development Specialist will contact you and the landlord and schedule a move-in inspection within 5 working days. Tenant Based Rental Assistance Program tbndbook Page 6 of9 8-11 VII. Inspecting the Unit The City of Chub. Vista is required by HUD to conduct a Housing Quality St,~ndards (HQS) inspection prior to beginning a lease. The City Co=unity Deyelopment Specialist will inspect both the exterior and interior of the unit to ensure that the unit is in decent, safe and sanitary condition. All utility services must be operable at the time of inspection. When the unit passes inspection, the City of Chub. Vista staff mal' negotiate the Rent to Owner, based on dle oyerall condition of the property, rents for comparable units, and whether the total tenant contribution e.'tceeds 40% of your monthly-adjusted income. Do not move into the unit until the City staff adYises you of the effectIve date of the lease and your share of the rent to dle landlord. You are responsible for 100% of the contract rent if you move in prior to the effective date of the lease and Housing Assistance Payment contract. If the unit fails the move-in (initial) inspection, the landlord will be informed of the failed items and be given time to make the repairs. You mal' not move in until the unit passes HQS inspection. If you are leasing in place, the lease and Housing Assistance Payment contract cannot s= until the unit passes the inspection. The City will conduct one follow- up inspection. If the unit fails again, you will be informed of the decision and advised to find another suitable unit, if you have time left on you HOME Tenant Based Rental Assistance (TBRA) Voucher (coupon) when you last submitted your last RFTA. For example, your voucher has 14 days left on the day you submitted the RFT.^,. Thirty days has passed and now the City informs you dlat the RFTA is deuied because the unit failed inspection. Your voucher e'.-pired. You will be given back the 14 days to look for alternatIve housing. Although the City of Chula Vista ",-ill make every attempt to negotiate rent ",~th dle landlord, there are limitations with the HOME TBRA program and we must comply \vith HUD requirements. DO NOT enter into "side agreement" with the landlord to pay any amount above and beyond what is stated on the lease agreement. Violation of this . . rule is cause for termination of your housing assistance. VIII. Lead-Based Paint Information A copy of the brochure entitled Protect Your Family From Lead in Your Home is included in the briefing packet. Please read this brochure about the health hazards of lead-based paint. This is especially important if you have children under the age of si't and find a unit to rent which was built befote January 1,1978. Tenant Based Renml. .:\ssistlnce Program Handbook Page 7 of9 8-12 IX. Equal Housing Opportunity Laws There are Federal, State, and Local laws that apply to the prohibition of dis~rim;n.tion under certain citeumstances when tenting a unit. It is illegal to deny housing to any individual based on race, religion, national origin, immigration status, sex, presence of children, marital status, se""al orientation, or disability. We have included in this briefing packet information on the local Fait: Housing Agencies and a pamphlet titled Fait Housing Resources in the San Diee.<> Region. X. Rights of the Disabled People \vith disabilities are entitled to full and equal access to housing. Landlords, when requested, must make reasonable accommodations in their roles, policies, and practices. It is tl,e responsibility of the family to pay for the necessary modifications to the unit. XI. Keeping your assistance Receiving HOME TBRA assistance requires mat you comply \vim certain family obligations. These obligations are listed in your voucher (coupon) and in your Tenant Handbook. It is inlportant you become fanliliar ,vim mese obligations, as failure to comply will result in termination of your HOME TBM assistance. Eacl, year, me City of Chula Vista Community De,'elopment staff \v-ill conduct an annual recertification to determine your continued eligibility. In addition, me unit will be inspected at least annually to ensure its continued compliance with me Housing Quality Standards. It is inlportant mat you report any needed repairs to your landlord in a timely manner. You are also required to report changes in family size in writing to tl,e City of Chula Vista Community Development Department. Changes in income do not have to be reported to me City. We ",-ill determine if an adjustment in your rent portion is necessary and ",-ill send you an inteniew appointment if needed. In addition to complying ",ith me family obligations listed on your youcher (coupon) and this tenant handbook, you and your family members must comply ",ith the follO\ving: · Respond to any written or oral communication from me City promptly. . Not owe any money tn the City or any Housing Aumority. . Provide true and complete information TeIl1U1t Based Rentul ~1.ssistance Program Handbook Page 8 of9 8-13 . Not breach an agreement ~vith the City to pay amounts owed. . Not engage in threatening, abusive, or violent behavior toward the City's staff. . Not have drug or alcohol abuse that interferes with health, safety, or peaceful enjoyment of the premises or other residents. . Not commit any drug-related criminal actiyity or ;iolent criminal activity. o Dmg-rela/ed criminal history if the illegal JJJalmfac/u1"C, sale, distribl/lioll, sale, distdbll/ion, lIse or possessioll witb tbe illtelll 10 JJlamifactJ/re, sell, distn"bllte, or Jlse a cOlltrolled substalIce. o Drug-related mJJliJlal acti11i!J1 ~JeaJlS 011 or off tbe premises, 1/01 ;its! 011 or Ilear tbe prelllises illcllldillgposswioll of dmgparaphemalia. o f-7iolellt crimi/1a1 actit,iO' illCiIldfS cn"1lIiHal aciil,it)' that has Olle of its elOJJJCllts tbe lise, atte1l1'led 1m, or Ibreal'lIed 1m of pb)'Jical farce agaillsl a pmon or property, alld js v.illg mgaged fo' a/!JrfOJJli!} melllber. Note: Assistance mal' be terminated if a preponderance of evidence indicates that a family member has engaged in the drug related or violent criminal activity, whether or not an anest or a conviction is made. XII. How to Request an Informal Hearing The City Community Development Dhision is required to provide participants families with an informal bearing under the follm;ing circumstances: . A determination of the family's annual or adjusted income, and the use of such income to compute the housing assistance payment. A determination of the appropriate utility allowance, if any, for tenant-paid utilities from the Housing Authority provide schedule. A determination of the subsidy standards or a denial or the family's request for an exemption from the standards. /\. determination to terminate assistance for a participant family because of the family's action or failure to act. A determination to terminate assistance because the participant family has been absent from the assisted unit for longer that the ma..'<imum period permitted under the City's policy and HUD rules. . . . . In the case of termination of assistance, the City must give the family an opportunity for an informal hearing before the City tenninates the Housing Assistance Payment (Hi\P) Contract. The City ",ill simultaneously provide notice of the contract tennination to the landlord so it coincides \v-ith the termination of assistance. 111e family must request an informal hearing in writing before the deadline stated I the notice. The notice ,;ill state to wbom the hearing request should be addressed. Tenant Based Rental Assistance Program H:t.ndbook Page 90f9 8-14 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~qjL0./-hI! Ann Moore City Attorney Dated: 1/18/07 Home Rental Assistance Contract 8-15 ATTACHMENT 2 ~(~ =-L-:: CI1YOf CHUlA VISTA Community Development Department HOME RENTAL ASSISTANCE CONTRACT LANDLORD NAME & ADDRESS UNIT NO. & ADDRESS TENANT NAME Telephone No. This HOME Rental Assistance Contract ("Contract") is entered into between the Citv of Chula Vista and the Landlord identified above. This Contract applies only to the Tenant family and the dwelling unit identified above. 1. TERM OF THE CONTRACT The term of this Contract shall begin on and end no later than Contract automatically terminates on the last day of the term of the Lease. . The 2. SECURITY DEPOSIT A. The tenant will pay a security deposit to the Landlord in the amount of $ . The Landlord will hold this security deposit during the period the Tenant occupies the dwelling unit under the Lease. The Landlord shall comply with state and local laws regarding interest payments on security deposits. B. After the Tenant has moved from the dwelling unit, the Landlord may, subject to state and local law, use the security deposit, including any interest on the deposit, as reimbursement for rent or any other amounts payable by the Tenant under the Lease. The Landlord will give the Tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used as reimbursement to the Landlord, the Landlord shall promptly refund the full amount of the balance to the Tenant. C. The Landlord shall immediately notify the City of Chula Vista when the Tenant has moved from the Contract unit. 3. RENT AND AMOUNTS PAYABLE BY TENANT AND THE CITY OF CHULA VISTA A. Initial Rent. The initial total monthly rent payable to the Landlord for the first _months of this Contract is $ B. Rent Adjustments. With no less than 60 days' notice to the Tenant and the City of Chula Vista, the owner may propose a reasonable adjustment to be effective no earlier than the 13th month of this Contract. The proposed rent may be rejected by either the Tenant or the City of Chula Vista. The Tenant may reject the proposed rent by providing the Landlord with 30 days' written notice of intent to vacate. If the City of Chula Vista rejects the proposed rent, the City of Chula Vista must give both the Tenant and the Landlord 30 days' notice of intent to terminate the Contract. C. Tenant Share of the Rent. Initially, and until such time as both the Landlord and the Tenant are notified by the City of Chula Vista, the Tenant's share of the rent shall be $ 8-16 ~I~ =-:-1::' - CITY Of CHUlA VISfA Community Development Department HOME Rental Assistance Contract (Page Two) D. City of Chu/a Vista Share of the Rent. Initially, and until such time as both the Landlord and Tenant are notified by the City of Chula Vista, the City of Chula Vista's share of the rent shall be $ . Neither the City of Chula Vista nor HUD assumes any obligation for the Tenant's rent, or for payment of any claim by the Owner against the Tenant. The City of Chula Vista's obligation is limited to making rental payments on behalf of the Tenant in accordance with this Contract. E. Payment Conditions. The right of the owner to receive payments under this Contract shall be subject to compliance with all of the provisions of the Contract. The Landlord shall be paid under this Contract on or about the first day of the month for which the payment is due. The Landlord agrees that the endorsement on the check shall be conclusive evidence that the Landlord received the full amount due for the month, and shall be a certification that: 1. the Contract unit Is in decent, safe and sanitary condition, and that the Landlord is providing the services, maintenance and utilities agreed to in the Lease. 2. the Contract unit is leased to and occupied by the Tenant named above in this Contract. 3. the Landlord has not received and will not receive any payments as rent for the Contract unit other than those identified in this Contract. 4. to the best of the Landlord's knowledge, the unit is used solely as the Tenant's principal place of residence. F. Overpayments. If the City of Chula Vista determines that the Landlord is not entitled to any payments received, in addition to other remedies, the City of Chula Vista may deduct the amount of the overpayment from any amounts due the Landlord, including the amounts due under any other Rental Assistance Coupon Contract. 4. HOUSING QUALITY STANDARDS AND LANDLORD-PROVIDED SERVICES A The Landlord agrees to maintain and operate the Contract unit and related facilities to provide decent, safe and sanitary housing in accordance with 24 CFR Section 882.109, including all of the services, maintenance and utilities agreed to in the Lease. B. The City of Chula Vista shall have the right to inspect the Contract unit and related facilities at teast annually, and at such other times as may be necessary to assure that the unit is in decent, safe, and sanitary condition, and that required maintenance, services and utilities are provided. C. If the City of Chula Vista determines that the Landlord is not meeting these obligations, the City of Chula Vista shall have the right, even if the Tenant continues in occupancy, to terminate payment of the City of Chula Vista's share of the rent and/or terminate the Contract. 5. TERMINATION OF TENANCY The Landlord may evict the Tenant following applicable state and local laws. The Landlord must give the Tenant at least 30 days' written notice of the termination and notify the City of Chula Vista in writing when eviction proceedings are begun. This may be done by providing the City of Chula Vista with a copy of the required notice to the tenant. 8-17 ~ff? -r- - ~ OlYOF CHUlA VISfA Community Development Deportment HOME Rental Assistance Contract (Page Three) 6. FAIR HOUSING REQUIREMENTS A. Nondiscrimination. The landlord shall not, in the provision of services or in any other manner, discriminate against any person on the grounds of age, race, color, creed, religion, sex, handicap, national origin, or familial status. The obligation of the landlord to comply with Fair Housing Requirements Insures to the benefit of the United States of America, the Department of Housing and Urban Development, and the City of Chula Vista, any of which shall be entitled to involve any of the remedies available by law to redress any breach or to compel compliance by the Landlord. B. Cooperation in Quality Opportunity Compliance Reviews. The landlord shall comply with the City of Chula Vista and with HUD in conducting compliance reviews and complaint investigations pursuant to all applicable civil rights statutes, Executive Orders and all related rules and regulations. 7. CITY OF CHULA VISTA AND HUD ACCESS TO LANDLORD RECORDS A. The landlord shall provide any information pertinent to this Contract which the City of Chula Vista or HUD may reasonably require. B. The landlord shall permit the City of Chula Vista of HUD, or any of their authorized representatives, to have access to the premises and, for the purposes of audit and examination, to have access to any books, documents, papers, and records of the landlord to the extent necessary to determine compliance with this Contract. 8. RIGHTS OF CITY OF CHULA VISTA IF LANDLORD BREACHES THE CONTRACT A. Any of the following shall constitute a breach of the Contract: (1) If the landlord has violated any obligation under this Contract; or (2) If the landlord has demonstrated any intention to violate any obligation under this Contract; or (3) If the landlord has committed any fraud or made any false statement in connection with the Contract, or has committed fraud or made any false statement in connection with any Federal housing assistance program. B. The City of Chula Vista's right and remedies under the Contract include recovery of overpayments, termination or reduction of payments, and termination of the Contract. If the City of Chula Vista detemnines that a breach has occurred, the City of Chula Vista may exercise any of its rights or remedies under the Contract. The City of Chula Vista shall notify the landlord in writing of such determination, including a brief statement of the reasons for the determination. The notice by the City of Chula Vista to the landlord may require the landlord to take corrective action by a time prescribed in the notice. C. Any remedies employed by the City of Chula Vista in accordance with this Contract shall be effective as provided in a written notice by the City of Chula Vista to the landlord. The City of 8-18 ~ff? -fi- -~ Cl1YQF CHUlA VISTA Community Development Department HOME Rental Assistance Contract (Page Four) Chula Vista's exercise or non-exercise of any remedy shall not constitute a waiver of the right to exercise that or any other right or remedy at any time. 9. CITY OF CHULA VISTA RELATION TO THIRD PARTIES A. The City of Chula Vista does not assume any responsibility for, or liability to, any person injured as a result of the Landlord's action or failure to act in connection with the implementation of this Contract, or as a result of any other action or failure to act by the Landlord. B. The Landlord is not the agent of the City of Chula Vista and this Contract does not create or affect any relationship between the City of Chula Vista and any lender to the Landlord, or any suppliers, employees, contractors or subcontractors used by the Landlord in connection with th is Co ntract. C. Nothing in this Contract shall be construed as creating any right of the Tenant or a third party (other than HUD) to enforce any provision of this Contract or to asses any claim against HUD, the City of Chula Vista or the Landlord under this Contract. 10. CONFLICT OF INTEREST PROVISIONS A. No employee of the City of Chula Vista who formulates policy or influences decisions with respect to the Rental Assistance Program, and no public official or member of a goveming body or state of local legislator who exercise his functions or responsibilities with respect to the program shall have "ny direct or indirect interest during this person's tenure, or for one year thereafter, in this contract or in any proceeds or benefits arising from the Contract or to any benefits which may arise from it. 11. TRANSFER OF THE CONTRACT The Landlord shall not transfer in any form this Contract without the prior written consent of the City of Chula Vista. The City of Chula Vista shall give its consent to a transfer if the transferee agrees in writing (in a form acceptabie to the City of Chula Vista) to comply with all terms and conditions of this Contract. 12. ENTIRE AGREEMENT: INTERPRETATION A. This Contract contains the entire agreement between the Landlord and the City of Chula Vista. No changes in this Contract shall be made except in writing signed by both the Landlord and the City of Chula Vista. B. The Contract shall be interpreted and implemented in accordance with HUD requirements. 8-19 ~\~ ::-L-:: ~ OlYOF CHUlA VISfA Community Development Deportment HOME Rental Assistance Contract (Page Five) 13. WARRANTY OF LEGAL CAPACITY AND CONDITION OF UNIT A. The landlord warrants the unit is in decent, safe, and sanitary condition as defined in 24 CFR Section 882.109, and that the landlord has the legal right to lease the dwelling unit covered by this Contract during the Contract term. B. The party, if any, executing this Contract on behalf of the landlord hereby warrants that authorization has been given by the landlord to execute it on behalf of the landlord. landlord Name (Type or Print): (City of Chula Vista) Representative (Type of Print): (Signature/Date) (Signature/Date) WARNING: 18 U.S.C. 1001 provides, among other things, that whoever knowingly and willingly makes or uses a document or writing containing any false, fictitious, or fraudulent statements or entries, in any matter within the jurisdiction of any department or agency of the United States, shall be fined not more than $10,000, or imprisoned for not more than five years, or both. lANDLORD'S CHECK TO BE MAilED TO: 55 NO. NAME(S) ADDRESS SIGNATURE OF OWNER DATE SIGNATURE OF OWNER DATE 8-20 COUNCIL RESOLUTION NO. RESOLUTION APPROVING A TENANT BASED RENTAL ASSISTANCE PROGRAM AND AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR PROCESSING WHEREAS, the City of Chula Vista desires to assist low-income households through the development and implementation of affordable housing programs; and WHEREAS, the provision of affordable housing opportunities is consistent with and called for by the City's General Plan Housing Element, Consolidated Plan, and California Health and Safety Code; and WHEREAS, HOME funds have been identified as the funding source for the Program; and WHEREAS, as required by the HOME program, an environmental review has been conducted in accordance with the National Environmental Protection Act (NEPA), and it has been determined that the development and implementation of a Rental Assistance Program is a Categorically Excluded Activity per 24CFR58.35(b); and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defmed under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no further environmental review is necessary. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the implementation of a Tenant Based Rental Assistance Program, in an effort to provide affordable housing consistent with the City's General Housing Element and Consolidated Plan. BE IT FURTHER RESOLVED, the Community Development Director, or their designee, is authorized to execute all documents necessary for processing. Presented by Ann Hix Acting Director Development of Community Approved as to form by ~~13MP~ /~ oore City Attorney J:\COIvfMDEV\RESOS\Rental Assistance Program. doc 8-21