HomeMy WebLinkAboutCC 9 SECTION 8 PROG 03-06-89.AGENDA _-
DATE: PARCH 6, 1989
CONSENT CALENDAR
NO. 9
3-6-89 ~ ....
Inter- Corn
TO:
FROM:
SUBJECT:
WILLIAI~ A. HUSTON, CITY I~NAGER
CO~#UNIT¥ DEVELOP#ENT DEPARTRENT
SECTION 8 CERTIFICATE RENTAL ASSISTANCE PROGR~
RECOIIIENDATION
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It is recommended that the City Council adopt Resolution No. 89-31 requesting
that the U.S. Department of Housing and Urban Development and the U.S. Congress
take necessary actions to avoid a premature reduction in the Section 8 Existing
Rental Assistance Program.
BACKGROUND
Since 1975 the Orange County Housing Authority (OCHA) has administered the
federally funded Section 8 Rental Assistance Certificate Program. The City of
Tustin is an active participant of this program with 233 families currently
receiving housing assistance payments. This program provides rental assistance
to very-low-income tenants housed within our City limits.
Funding for this Certificate program is provided by the U.S. Department of
Housing and Urban Development (-HUD). The funding contract between OCHA and HUD
is due to expire on October 7, 1990. In order to be in compliance with HUD
regulations, it will be necessary to begin to dismantle the program on October
7, 1989 because the Housing Authority is prohibited from entering into any new
Housing Assistance Payment contracts for periods of less than 12 months. For
OCHA and the City of Tustin, this Will result in a drastic reduction of housing
assistance payments to very needy County residents. Attached to this report is
correspondence from the Executive Director of the Orange County Housing
Authority requesting City Council support for the continuation of the program.
Also attached is a copy of a resolution which was adopted by the Orange County
Board of S.upervisors on December 13, 1988.
CONCLUSION
The attached draft Resolution No. 89-31 sets forth the same policy as adopted by
the Orange County Board of Supervisors with respect to the continuation of the
Section 8 Certificate Program. The resolution recommends 'to Congress that
appropriate action be taken to avoid reduction of rental assistance to low
City Councll Report
Section 8 Certificate
Rental ASsistance Program
Hatch 6, [989
Page two
income families. Staff suggests that the Council support continuation of the
program by adoption of Resolution 89-31.
Ma~ An .n~/Chamberl a) n
Assoclat~ Planner
MAC :CAS:ts
Attachments: Draft Resolution No. 89-31
Letters 'from OCHA
~Chrlstlne A. Shlngle~t
Director of Community Development
Corn rnunity Developrnent DeparTrnen~
O, . .,'IGE COUNTY HOUSING ~ I torlITY
2043 North Broadway · Santa Aaa. California 92706 ® (714) 836-3033
February 8, 1989
The ttonorable Ursula F. Kennedy
Mayor of Tustin
300 Centennial Way
Tustin, CA 92680
Subject: Section 8 Certificate Rental Assistance Program
Dear Mayor Kennedy:
The purpose of this letter is to alert you and your City Council colleagues
to the possible loss of federally funded rental assistance currently
available to residents of your city through your participation as a member
jurisdiction of the Orange County Housing Authority (OCHA). Congressional
action must be taken very soon to avert the 'loss of this valuable resource
to very-low-income Orange County residents.
This important issue has been a topic of discussion at several recent
monthly meetings of the OCHA Cities Advisory Committee. The committee
members asked that an information letter describing tile expiration issue be
sent by OCHA to elected officials in each participating city.
Description of Section 8 Certificate Rental Assistance Program
OCHA operates the Section 8 Housing Certificate rental assistance program
which provides a subsidy to eligible very-low-income residents of your city
and 23 other cities in Orange County. The program is fully funded by the
U. S. Department of Housing and Urban Development (HUD). OCHA currently
provides this assistance to 5,245 households, a portion of which reside in
your city.
The income of Section 8 households is less than 50% of the county median
income. Under the program, tenants pay 30% of their income as rent and the
program pays the difference between that amount and a maximum fair market
rent.
The Honorable Ursula F. Kennedy
February 8, 1989
Page Two
ExPi.'ra~tion of Funding.
The Certificate program is operated under an agreement between HUD and OCHA
called an Annual Contributions Contract (ACC) which will expire on
October 6, 1990, unless new federal legislation extends or replaces it.
Mamy ACC's across the nation will reach expiration beginning in 1990;
Senators Alan Cranston and Alphonse D'Amato plan to introduce comprehensive
affordable housing legislation early this year which includes provisions for
the continuation of the tenant-based rental assistance program in some form.
Premature Reduction of Rental Assistance Prior to October, 1990
The· proposed legislation, however, will not address a related issue which
calls for more immediate action: HUD regulations preclude Housing
Authorities from entering into new leases and contracts with landlords on
behalf of tenants for periods of less than twelve months prior to the end of
the ACC. This means that for practical purposes Orange County's programI
will be reduced beginning October 7, 1989. Since statutory requirements
limit the ACC to a period of fifteen years, congressional action must be
taken to extend the contracts. If such action is not taken, OCHA stands to
lose approximately 1,440 units starting in October of this year.
By bringing this issue to your attention, it is hoped that you and your City
Council will support OCHA's efforts to preserve this valuable resource.
While all of the residents of your city stand to benefit from the
continuation of the program, your city's very-low-income residents stand to
1 ose a great deal i f a ti mely sol uti on i s not found.
Currently 233 households in your city participate in OCHA's Section 8 rental
assistance program. If the ACC is not extended, the number of assisted
households in your city could decrease by 25% between October 7, 1989 and
October 6, 1990.
Local Support for Legislation to Continue to Fund Rental Assistance
Over the last eight months, OCHA has taken steps to inform local and federal
elected officials, former HUD Secretary Samuel Pierce, national professional
organizations and housing advocates about the impending premature loss of
this important resource. Although some HUD officials are aware of the early
loss problem, there is no clearly defined plan by HUD or Congress to address
the situation.
Enclosed is a copy of a resolution adopted by the Orange County Board of
Supervisors (OCHA Commissioners) on December 13, 1988, which formally states
the Board position with respect to the need to support legislation which
The Honorablae UrSula F. Kennedy
February 8, 1989
Page Three
Local Support for Legi sl ati on to Conti hue
to Fund Rental Assistance (continued,,.)
will continue this vital program for the very-low-income residents of OCHA's
jurisdictions. Your City Council may. wish to take formal action
acknowledging your city's support for the continuation of the Section 8
rental assistance program.
I hope that this letter has been useful to you in understanding the s.tatus
of the Section 8 Certificate rental assistance program serving residents of
your city. If you would like to know more about any aspect of the program
or the problems facing us, please call me at (714) 836-3002. I will be glad
to discuss the matter at greater length.
Sincerely,
Sandra J. McClymonds
Executi ye Director
SJM:rs
Enclosure
cc w/enclosure: OCHA Advisory Committee Member Mary Ann Chamberlain
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RESOLUTION OF THE BOARD OF SUPERVISORS ....
SITTINGi ,AS THE'. BOARD' OF COMMXSSIOH~S OF.
THE ORANGE COUNTY HOUSING AUTHORITY OF
ORANGE COUNTY, CALIFORNIA
December 13, 1988
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On the motion of Superv±sor Vasque=, duly seconded and caz:r~ed, the
following Resolution was adopted:
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WHEREAS, subsidized .housing programs funded by the U.S. Department
of Housing and Urban Development provide very-low-income families decent,
safe and sanitary housing at an affordable price; and
WHEREAS, the Section 8 Housing Assistance Payments Program for
Existing Housing is the major component of the subsidized housing program-'
in Orange County, California; and
~. WHEREA. S, the need for rental, assistance.in Orange County Hous.~ng
Authority 3urisdictions is evidenced by a waiting 'list of over 6,000 very-
low-income elderly persons and families; and
WHEREAS, the Orange County Housing Authority has 'entered into an
Annual Contributions Contract with the U. 'S. Department of Housing and
Urban Development to administer 5,220 certificates under the Section 8
Housing Assistance Payments Program; and
WHEREAS,'the Annual Contributions Contract has an expiratio, n date !of
October 6, 1990, but, because federal regulations prohibit Public Housing
Authorities from entering into new leases' and contracts for periods of
less than twelve months, will be substantially reduced by 1,440 units
during the final year of the contract beginning October 7, 1989; and
· WHEREAS, the Orange County Legislative Planning Co.mmittee has ado~te~
a policy to support federal legis.lation which will continue to fund re~ta~
assistance programs for very-low-income households in Orange County; ~d |
,
WHEREAS, the Orange County Housing Authority Housing Commission h~s
recommended that this Board of Commissioners adopt this resolution in
support of the continuation of the Section-8 Housing Assistance Payments
Program without a reduction;
NOW' THE.REFO. RE, BE IT RESOLVED by the Orange County Housing Au.tho~it~
Board of Commissioners to recommend to the U. S. Department of Housing and
Urban Development and to the U. S. Congress that appropriate action be
taken .'to avoid the premature reduction of rental assistance provided
pursuant to 'the Annual Contributions Contract prior to 'its contracted
expiration date.
.Resolution No. H 88-5
Expiration of Federally (HUD)
Funded Rental Assistance Program,
Section 8 Certificate Program
BPD:vn
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BE IT FURTHER RESOLVED that the Executive Director is directed to
-coordinate with the County A~ministrative Office, Legislative Section,
and to transmit this Resolution to the appropriate federal authorities4
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Chal rman o upervls ors
SIGNED AND CERTIFIED THAT A COPY
OF THIS DOCUMENT HAS BEEN DELIVERED
TO THE CHAIRMAN OF THE BOARD
' LINDk D. OB'ERTS
Clerk of the Board of Supervisors
Sitting as the Board of Commissioners
of the Orange Co.unty Housing Authority
AYES:
NOES:
ABSENT:
'COMMISSIONERS GADDi H; VASQUEZ, "ROGER R.~' STANTON, --
DON R. ROTH, THOMAS F. RILEY AND
HARRIETT M. WIEDER
COMMISSIONERS. NONE
...
COMMISSIONERS NONE
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, LINDA D. ROBERTS, Clerk of t~e B6ard of-Supervisors of Orange
County, sitting' as the Board of Commissioners of the Orange County
Housing Authority, Orange County ,"California , hereby certify that the
above and foregoing Resolution was duly and regularly adopted by the
said Board at a regular meeting thereof held on the' ~k3~day of.
De~ember ' , 19.~8., and passed by a unanimous.' vote of Said
Board. ' .
IN WITNESS WHEREOF, I have hereunto set my hand and seal this
day of ' ' 'December' · , 19' 88 .
i LINDA D. ROBERTS
Clerk of the 'Board of Supervisors
Sitting as the Board of Commissioners
of the Orange County Housing Authority
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RESOLUTION NO. 89-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
- TUSTIN RECOMMENDING THAT APPROPRIATE ACTION BE TAKEN
TO AVOID THE PREMATURE REDUCTION OF RENTAL ASSISTANCE
PAYMENTS TO LOW INCOME FAMILIES IN THE SECTION 8
EXISTING RENTAL ASSISTANCE PROGRAM.
The City Council of the City of Tustin does hereby resolve as follows:
I. The City Council finds and determines as follows:
WHEREAS, subsidized housing programs funded by the U.S.
Department of Housing and Urban Development provide Very-low-income
families decent, safe and sanitary housing at an affordable price;
and
WHEREAS, the Section 8 Housing Assistance Payments Program for
Existing Housing is the major component of the subsidized housing
programs in Orange County, California; and
WHEREAS, the need for rental assistance in Orange County Housing
Authority jurisdictions is evidenced by a waiting list of over 6,000
very-low-income elderly persons and families; and
WHEREAS, the Orange County Housing Authority has entered into an
Annual Contributions Contract with the U.S. Department of Housing and
Urban Development to administer 5,220 certificates under the Section
8 Housing Assistance Payments Program; and
WHEREAS, the Annual Contributions Contract has an expiration
date of October 6, 1990, but, because federal regulations prohibit
Public Housing Authorities from entering into new leases and
contracts for peri ods of less than twelve months, will be
substantially reduced by 1,440 units during the final year of the
contract beginning October 7, 1989; and
WHEREAS, the Orange County Legislative Planning Committee has
adopted a policy to support federal legislation which will continue
to fund lrental assistance programs for very-low-income households in
Orange County; and
WHEREAS, the Orange County Housing Authority Commission has
recommended that the City Council of the City of Tustin as one of the
participating jurisdictions of the Orange County Housing Authority
adopt this resolution in .support of the continuation of the Section 8
Housing Assistance Payments Program without a reduct, ion.
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Resolution No. 89-31
Page two
II.
,The Clty Counctl-hereby recommends to the U.S. Department of Houstng
and Urban Development and to the U.S. Congress that appropriate
action be taken to avoid the premature reduction of.-rental assistance
provtded pursuant to the Annual Contributions Contract prtor to its
contracted expiration date.
PASSED AND ADOPTED at an adjourned regular meeting of the Tustin City
Council, held on the day of , 1989.
Ursula E. Kennedy,
Mayor
Aah w hn,
City Clerk