HomeMy WebLinkAboutOrange County Housing Authority - 1982-04-19 UEE OR CITY C ; � TIO . 3',11 sAcPIAP
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Date A.r ri l#71982
Submitted to: Honorable Mayor and City Council - --- --- -"
.%rJ1Jk0V hD L'1 CITY COUNCIL
S biriirttod bY: Charles W. Thompson , City Administrate" +
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Prepared by: Department of Development Services , HCD Divi •ion
Subject: MEMORANDUM.;OF,CONTRACT FOR PARTICIPATION III JfCTTOTrl Wp
iobERATE REHABILITATION PROGRAM
Statement of issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE:
The Orange County Housing Authority has a set aside of Federal funds in the Section
8 ,Mode"rate Rehabilitation Program. These funds can provide rental assistance to
additional lower income households occupying recently rehabilitated multi-family
rental housing. To garner these funds , the City must enter into the attached
Memorandum of rontract with the Orange County Housing Authority.
RECOW ENDAtION:
Approve and authorize the City CIerk to execute the attached Section 8 Moderate
Rehabilitation memorandum of Contract between the City of Huntington Beach and
the Orange County Housing Authority.
ANALYSIS:
The Section 8 Moderate Rehabilitation Program is administered by the U.S. Depart-
ment of Housing and Urban Development and is intended to provide Section 8 rental
assistance to lower income households occupying recently rehabilitated multi-
family rental housing. The Orange County Housing Authority has applied for, and
been granted, funds sufficient to provide rental subsidy to 125 households through-
out the County. At this time very few of these units have been committed and,
with the execution of the attached agreement, the City has the opportunity to
garner a share of these funds.
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The Section 8 Moderate Rehabilitation funds are intended to wort: in tanden with
local community' s housing rehabilitation programs. While HUD, through the Orange
County Housing Authority, p;-ovides funds to assist lower income households with
paying rent, this special pool of funds may be used to assist only households
occupying recently rehabilitated multi-family rental housing. Therefore, this
program may only become operative with the cooperation and support of the City
through the provision of low interest rehabilitation loans . Specifically, under
this program, the City would stipulate multi-family rental units which it is
seeking .-to rehabilitate. These units could be processed through the City's
existing Neighborhood Enhancement (Rehabilitation Loan) Program and be provided
with below market interest rate rehabilitation loans. Once these units are
rehabilitated, the Orange County Housing Authority may use the Section 8 Moderate
Rehabilitation funds to provide rental assistance to lower income households that
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occupy the rehabilita ted units. In exchange fur the owners participation in
.the rehabiI it"
tiorn. efforts, the. rents .;charged for the. rehabilitated units may
be increased to,.120 ,percent of what HUD would normally allow in the Section 8
Program. ln' addition, the owner must also agree to make the units available
to ,participants in the Section 8 Rental Assistance Program for a period of 15
years.
Tile City''can benefit from this program in two ways : (1) additional multi-family
rental stock.'wil.l be reha-bilitated, and (2) additional housing stock and housing
subsidy funds,'will be available to lower income households within Huntington
Beach'. ,This program has particular applicability to the Oakview neighborhood
identified as .a target area. in the Community and Neighborhood Enhancement Pro-
gram. . The combination of the City's Neighborhood Preservation Program efforts
and the .Section 8 Moderate Rehabilitation Program in the Oakview neighborhood,
along with any other physical improvements which may later be funded, would sub-
stantially improve conditions within the Oakview neighborhood and address the
needs identified it, the Community and Neighborhood Enhancement Program.
FUNDING SOURCE:
U.S. Department of Housing and Urban Development; Housing and Community Develop-
ment Block Grant funds.
U.S. Department of Housing and Urban Development Section 8 Moderate Rehabilitation
Program, as administered by the Orange County Housing Authority.
ALTERNATIVE ACTIONS:
The Neighborhood Enhancement Program can be active in the Oakview neighborhood
and can rehabilitation multi-family units in that neighborhood; but, without the
execution of the attached Memorandum of Contract with the Orange County Housing
Authority, no additional rental assistance funds can be available to assist the
lower income households occupying these units.
ATTACHMENTS:
Section 8 Moderate Rehabilitation Memorandum of Contract.
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' ` r ITEM 3
.. � Includes £y C06*nsel ' s"ccI-.; nts
CITY OF HUtJTIitGTON BEACH
SECTIOiI°8 MODERATE REHr6I LITATIQII
MiEMORANDUIM OF CONTRACT
Entered into this 7 ' day oif , i9%?, By and
s
Between ORANGE COUNTY HOUSING AUTHORITY, hereinafter referred to as OCHA, and
CITY OF HUNTINGTON BEACH, hereinafter referred to as CITY,
WI T1-1ESSETli
WHEREAS, OCHA - i s a "public housing agency" as defined in the U.S. Housing
Act of 1937, as arranded (42 U.S.G. 1437a et seer) (The fact) and is lecally quali-
fied and authorized to participate in the Section 8 4'.1oderate Rehabilitation Pro-
gram (the "Program") (24 CFR Part 882, Sections 882. 102, 882. 109, 882. 112 , 632.201,
882.202, 882.216, 882.217, and Subparts D & E) in the area for t-,,hich the Program
is to be carried out, and
WHEREAS, the CiTY through its Housing and ComT.unity Development Division has
implementea a i;eighborl;c�od Preservation Program which offers lair interest .loans for
housing rehabilitation to qualified owner occupants and investor- o,0-ners , and
WHi'REAS , under the Program, OCIIA is able to enter into a Housing Assistance
Pay' meiit's Contract with an owner of dwelling units only after awne.r rehabi 1 i Cates
units as provided under program which i nvo I :es :: mi n i r,um cypend i Lure by o,,ner of
One The Dollar: and no/100 ($11 ,000.00) for each unit, including each units
prorat-ad shard of work to be accomplished on co.,-ron areas or corzon systems (such
as electrical or pluirbing systems) to:
Upgrade to Decent, Safe and Sanitary conditions to comply with the Housing
QVal i ty Standards or other standards approved by HUD, from a condition bel o:r those
standards (improver*erits being of a rodent nature and other than rouLine raintenance);
or
Repair or replace major building S stemis cr components ir, danger of failure;
WHEilEAS, under the Program, CITY desires to achieve the following objec ti fires:
froednm of housing choice and spatial decoricentration of assisted housing `'into
areas outside of low income and minority concentrations , and neighborhood pre--
ser+ration and revitalization, and
WHEREAS, on behalf of CITY, OCHA will amend its application to the U.S. Depart-
ment of Ho't sinq and Urban Development (HUD) for funds to subsidize the rents for
a number, of units under the Program which is consistent 'with the Housing Assistance
P1 an;
i►O,J, THEREFORE, the parties hereto agree as follows:
1. Upon approval by HUD of an allocation of Section 8 h;oderate Rehabilitation
Progran units to be subsidized within CITY, OCHA, with the assistance of CITY, will
prepare, as prescribed under Program r-quirements , additional application submis-
sions including an equal opportunity housing plan; an administrative plan; a pro-
posed schedule of allowance for utilities and other services ; a proposed rehabili-
tation and leasing schedule; and estir;ates of financial requirecents for preliminary
costs, ongoing administrative costs and housing assistance payments .
2. The initial allocation of 'rnits to be subsidized within CITY will be deter-
Mined .
mined by OCHA with CITY approval and ~•rill not, Exceed CITY' s Housing Assistance Plan
goals. If CITY is unable to adhere to its HUD-approved quarterly rehab and leasing
schedule, OCHA will have th(! right to reduce tht� nu.'ber of units allocated to CITY.
3. OCHA will administer, the Procis am and fulfill all dutic:: outlined or speci-
fied in the Act, the Annual Contributions Contract (ACC) , Program Regulations , and
applicable HUD Handbooks and guidelines. ,
4. Under'OCHA's supervision, and in conformance with applicabla Program require--
rrents , CITY will provide rehabilitation technical assistance: to cijrry out the folloa;-
ing functions necessary for rehabilitation of units under theProjratn:
a. initial inspections;
b. assistance to oviners in preparing detailed ',Tory. writeups , spacifi-
ca.tions an`d plans ;
c. assistance to owners in preparing cost estimates ;
d. preparation� Ufa list of contractor; , including rin:r-ity con-
. , . . ;,.. . . :. ..
tractors;
e. assistance to owners in selection of a contractor;
f. financial counseling and preparation of loan applications;
g. inspections during rehabilitation;
h. final inspections .
5. CITY will allow 4uallfied i rive stor/oim.ers under this Program to apply
for assistance under Neighborhood Preservation Program Currently a.-ministered by
_ CITY and
6. The technical assistance functions to be perforc.4d by CITY ~•rill be car-
ried out without monetary compensation as part of CITY' s ongoing rehabilitation
effort.
7. The following guidelines will apply to OCHA in selecting Q;1ne,, Proposals :
a. No proposals for the Prograri will be approved %.there permanent dis-
placement of tenants will be necessary.
b. Proposal :; crust he selrr.ted in accordance with requirements specified
in Section tiii2.501(c) of the Program Pegulations.
c. QCHA will. not select units located in: (1) an area of minority con-
centration unless sufficient, com-parable opportunities exist fcr
housing for minority f'ami l i es outside areas of minority concentration,
or . (2) a racially mixed area if the units will cause a significant
increase in the proportion of minority to nonminority residents in
the area.
d. Proposals must be consistent with the CITY's Neighborhood Preservation
Program guidelines, and all proposals must be for;'structures=located
wi thin the geographic target areas identified within the CITY's
Conuruni ty and ilei ghbor•hood Enhancement Program.
e. Proposals will be screened by CI I V s Neighborhood Presentation Prograt,r
staff and an assessment of the location and nature of the proposal
shall be prepared by Neighborhood Preservation stiff and forwarded
to OCHA.
f. Within all categories of preferences , the date and time of establishing
preliminary feasibility of the o•,;ner proposal will be used to rank
proposals. '
8. OVA will notify CITY of decisions concerning selection of o,.ner proposals ,
determination of eligible tenants , determmination of feasibility, entrance into
Agreements with Mers , apprnval of changes to the Agreeiment, acceptance of units
upon completion , and execution of the Housing Assistance Payments Contract. Such
notifications will assist CITY to wonitor progress in meeting the HUD-approved
rehabilitation and leasing schedule.
9. The term of this agreeiinenL will cor.rence upon execution by the parties
hereto and HUD-approval of the at, ' --Tit and terminate upon completion of all tech-
nical assistance as provided under -he agroerent.
10. ifeither• CITY ntor irmv officer or cr,�,lloyer- thereof shall be responsible for
any darage or liability occurring by reasoin of any action or omission of OCHA under
or in connection with any vinrk, authority or jurisdiction delegated to OCHA under
this contract. it i s also tinders tool and agreed Lha t, pursuant to Government Cade
Section 895.4, OCHA shall fully indemnify, defend and !told CITY harmless from any
liability imposed for injury (as defined by Go:arnment Code Section 810.8) occurring
by reascon of any action or omission of ON' under or in connection with arty work,
; . authority or jurisdiction delegated to OCHA under this contract.
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III WITNESS THEREOF, Orange County Housing Authority has cause; this Agree_
grant to be executed f by 'its Chairperson and Executive. Director, .and CITY has caused
this Agreement to be executed as of the date first above written.
ORANGE COUNTY HOUSING AUTHORITY, a non-p`rofi �
tax exempt corporation of. the State of, C61ifornia
Dated r.-; f��c, Cr '✓ By ;-c; L�L'�J ,•_?_c; ._ /L'
Chairperson, Housing Co ,.irssinn
Dated c-�`-.� �' By ✓l -f;
Chaff rpprson, Housinq A u hog i ty
Dated
0�. '�1 1 `� Z Z , Jll�1G
1- � gy
Executive, Director, OCNA
CITY OF HUI;TINGTOIi BEACH, a municipal corporation
By
3
ATTEST: APPROVED AS TO F02k1:
_ C,i y Cy ---- - ,
G r C lAS A t t o rnA�' ,;G
REV IE14ED A!tQ..APPR0VEU: IIIITIATED AND APPROVED:
Ci ty Ad -mini stratpr Director, nd Indun s 1 Enterprise