HomeMy WebLinkAboutAgenda Statement 1980/06/17 Item 11
COUNCIL AGENDA STATEMENT
Item 11"
~ Meeting Date 6/17/80
'0' Supporting the Application by the San Diego
ITEM TITLE: Resolution County Housing Authority for the Section 8
Moderate Rehabi 1 i tation Program
. t
SUBMITTED BY: Community Development Di rector fb (4/5ths Vote: Yes_ NO.JLJ
HUD has made 72 units of Section 8 Moderate Rehabilitation available to the County
Housing Authority for use in Chula Vista, El Cajon, La Mesa, Escondido and the urban
County area. Cities are not eligible to, apply for this program directly, but must
work through a local 'public housing agency. This would not be a new program in
effect, but would obtain additional Section 8 certificates for the City and allow the
City to receive credit for rental rehabilitation towards Housing Assistance Plan goals.
HUD Program regulations require that the application from public housing'agencies must
include a statement "indicating local government approval of the submission of the ap-
plication." Therefore, prior to the City's participation in the program, a letter
supporting the County's application must be submitted. It is, therefore, my
RECOMMENDATI ON:
That the City Council adopt the attached resolution which supports the County's appli-
cation for the Section 8 Moderate Rehabilitation Program.
BOARDS/COMMISSION RECOMMENDATION: Not applicable.
01 SCU SS I ON:
The program utilizes existing programs to rehabilitate rental units in rehabilitation
areas, then provides Section 8 rental assistance certificates to the eligible resi-
dents. The City of Chula Vista has used Block Grant funds for rental rehabilitation
and requires that the owner limit rents to the Section 8 rates. However,.there is no
requirement that the owner rent only to Section 8 recipients or any other low and
moderate (l/M) income persons. While these tenants are paying a reduced rent, the
City receives no credit towards the meeting of its Housing Assistance Plan goals of
housing L/M income persons. HUD will permit credit towards the HAP goals only when
a tenant pays less than 25% of their income twards the rent. This program would,
therefore, allow the City to receive a credit towards meeting its HAP goals.
In this program, a property owner may use private funds, Block Grant funds, or any
other available program to rehabilitate any number of units at'a cost of $1,000 to
$15,000 per unit. He then signs a 15 year contract with HUD which supplies each
unit with a Section 8 certificate for up to 120% of the'.Fair Market Rent. Eligible
persons may then rent these units for 25% of their income with the remainder supplied
by HUD.
The program will be administered by Housing Authority personnel who will coordinate
with the City's rehabilitation personnel.
FINANCIAL IMPACT:
None; rehabilitation to be done with existing Block Grant funds.
AKP:as I OLf~
Form A-113 (Rev. 11/79)
EXHIBITS
Agreement_____ Resolution~ Ordinance_____ Plat_____ Notification List
Other
ENVIRONMENTAL DOCUMENT: Attached
Submitted on
by .t _ City COl~~ci of
Chula Vista, C;:lIliOrnla
Dated ~ -17- j'(}
, .