HomeMy WebLinkAboutAgenda Statement 1981/03/10 Item 6
.'
COUNCIL AGENDA STATEMENT
Item (;
Meeting Date 3/10/81
ITEM TITLE: Resolution/O?!IPSupporting Applications by the San Diego County Housing
Authority for the Section "8 Moderate Rehabilitation
Housing Assistance Payments ,Program
SUBMITTED BY: Community Development Direc~ (4/5ths Vote: Yes___ No~)
On June 17, 1980, the Council passed Resolution #10143 supporting the San Diego
County Housing Authority's application to the U. S. Department of Housing and Urban
Development (HUD) for a 72-unit allocation of Section 8 Moderate rehabilitation
rental subsidies. A portion of that allocation was to be available for implementa-
tion by the Housing Authority in the City of Chula Vista. That allocation was sub-
sequently awarded to the Housing Authority.
As they do periodically, HUD has recently informed the Housing Authority of the
availability of additional units under the same program, in this instance 11 units.
Application for such units by the Housing Authority requires endorsement by the par-
,UCipating cities. Therefore, it is my
RECOMMENDATION: That the Council
Adopt the attached resolution supporting this and any subsequent applications by the
County for Section 8 Moderate Rehabilitation rental subsidies to be utilized in
Chula Vista,'whi~h applications ire.identical.in nature ,but not necessarily in size
'to this application, and authorizing the Mayor to forward appropriate letters of en-
dorsement to HUD.
BOARDS/COMMISSION 'RECOMMENDATION: Not applicable.
DISCUSSION:
The Section 8 Moderate Rehabilitation Housing Assistance Payment Program makes
monthly rental subsidy payments to landlords on behalf of low and moderate income
famil.i es occupyi ng ren ta 1 units whi ch have been rehabil itated to ,conform with HUD' s
Housing Quality Standards. The benefits which accrue to the participants in this
program are as follows:
Tenant: A low or moderate income family which occupies an eligible unit
pays no more than 25% of its income for monthly housing expense, thus
meeting HUD's criteria for being affordably housed. A federal subsidy
pays the balance of the family's rent.
Landlord: The program provides the owner of rental units an incentive
to bring those units up to standard condition. The owner may obtain
rehabilitation financing through private or publically-assisted sources,
accomplish rehabilitation which will cause the units to adhere to HUD
Housing Quality Standards, and recoup the cost of rehabilitation through
the federal rent subs'idies. The owner may receive rents (tenant payments
and federal subsidies) on the rehabilitated units which exceed the normal
Section 8 program rent maximums by the amount of the" debt service on the
rehabilitation loan, .thus accomplishing the improvement of his property
at no .cost to himself.
Con ti nued
--
Form A-ll3 (Rev. 11179)
/ oc[ fa
EXHIBITS
Agreement____ Resolution--x- Ordinance Plat Notification List
Other
ENVIRONMENTAL DOCUMENT: Attached____ Submitted on
,
Page 2, Item
6
Meeting Date
3/10/81
~: Chula Vista would be able to demonstrate progress towards its
stated housing goals in its Housing Assistance Plan. Any affordably-
housed families under this program in the Citj:would be claimed as an
accomplishment in our annual progress evaluations submitted to HUD.
Such evaluations can have an impact on the level of our Community
Development Block Grant funding.
Housing Authority:~ The Housing Authority can pursue the provision
of affordable housing, the purpose for which it exists.
The San Diego County Housing Authority implements such programs in the City of
Chula Vista under an existing Memorandum of Understanding. All financial 1 iabil ity
would be undertaken and all staffing requirements would be met by the Housing Authority.
City staff would act as liaison with the Housing Authority. It is possible that some
eligible rental-unit owners within our CHIP Program target areas might utilize the
CHIP Program to accomplish the rehabilitation required under the Section 8 Moderate
Rehabilitation Program. However, CHIP Program staff involvement would not be signif-
icantly greater than on a rehabilitation loan not utilizing Section 8 Moderate
Rehabil itati on.
An outreach effort is about to be undertaken by the Housing Authority to implement
the 72 unit allocation already awarded. I am confident that this effort will be
successful and that Chula Vista will use a significant number of those 72 units,
would benefit from the awarding of 11 additional units, and could look forward to
additional allocations in the future.
FISCAL IMPACT:
There would be no significant staff involvement with this program. Successful pro-
gram implementation might result in increased CHIP Program activity, a Community
Development Block Grant-funded project.
DKG:ah
by the Ci~y CO:i:dl of
Chula Vista, California
Dated
3 -fa. ?/
{ C)l-{ I 0