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2006-07-19 (Report) ~' CITY OF ENCINITAS HOUSING AUTHORITY AGENDA REPORT Meeting Date: July 19,2006 TO: Housing Authority of~e Iii ~frn~ir~as Kerry L. Miller, Exec ':J1.~ ~atriCk Murphy, PI .~ & Building Director vid de Cordova, Principal Planner David Harris, Housing Coordinator VIA: FROM: SUBJECT: Approval of the 2006-2007 Annual PHA Plan of the Encinitas Housing Authority and amendments to the Section 8 Administrative Plan BACKGROUND: As a Public Housing Authority (pHA), the Encinitas Housing Authority is required to prepare a five-year Agericy Plan in compliance with the Quality Housing and Work Responsibility Act of 1998. The Agency Plan identifies the housing needs of lower income households on the waiting list for the Section 8 Housing Choice Voucher program. The plan includes goals, objectives, and priorities to meet those needs over the next five years. Additionally, the Encinitas Housing Authority must file annual updates to the five-year plan, even if there are no changes. The 2006-2007 Annual PHA Plan outlines the goals, objectives, and priorties for the rental assistance and related activities during the upcoming program year year. The City expects to receive about $1.1 million from the U.S. Department of Housing and Urban Development to assist eligible households with rental assistance through the Section 8 Housing Choice Voucher program. The Annual Plan is available for public review and comment from June 18 to July 18, 2006. The Section 8 Administrative Plan outlines the Housing Authority's policies and procedures for administration of the program, including the waiting list, local preferences, income calcuations, housing payment standards, inspections, recertifications, terminations, and appeals. ANALYSIS; The 2006-2007 Annual PHA Plan is attached (see Attachment A). There are no c~anges from the prior year plan. The proposed amendments to the Section 8 Administrative Plan (Attachment B) are in response to recommendations made by the HUD regional office in a letter dated June 12,2005. The letter H3-\ was sent to the Housing Authority after a monitoring visit in which the HUn representative reviewed our Administrative Plan. The Housing Authority has already implemented the changes, so approval of these amendments is to update the written policies and procedures contained in the Adminstrative Plan. These amendments include: 1) Disallowance of Earned Income: If a disabled person begins working, only part of the wages will be included in determining the family's rent portion. 2) A $400 household deduction is given to each elderly or disabled household. 3) Verification of Citizenship/Eligible Immigration Status: clarification that our citizenship verification procedure shall follow federal regulations. 4) Rent Reasonableness: Additional language to clarify that the EHA tests Rent Reasonableness according to nine required factors. FISCAL AND STAFF IMPACT The Housing Authority anticipates receiving about $1.1 million of HUn in fiscal 2006-2oo7to provide rental assistance to 136 families. The Housing Authority budget was approved on June 21,2006. RECOMMENDATION: Approve the 2006-2007 Annual PHA Plan and approve changes to the Administrative Plan. ATTACHMENTS: "A" - 2006-2007 Annual PHA Plan "B" - Section 8 Administrative Plan Text Amendments H3.~ Attachment "A" 2006-2007 Annual PHA Plan H3-3 PHA Plans u.s. Department of Housing and Urban Development Office of Public and Indian Housing OMB No. 2577-0226 (exp.06/30/2006) Streamlined Annual Version This information collection is authorized by Section S II of the Quality Housing and Work Responsibility Act, which added a new section SA to the U.S. Housing Act of 1937 that introduced S-year and annual PHA Plans. The full PHA plan provides a ready source for interested parties to locate basic PHA policies, rules, and requimnents concerning the PHA's operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA's mission and strategies for serving the needs oflow-income and very low-income families. This form allows eligible PHAs to make a streamlined annual Plan submission to HUD consistent with HUD's efforts to provide regulatory relief for certain types ofPHAs. Public reporting burden for this information collection is estimated to average 11.7 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number. Privacy Act Notice. The United States Department of Housing and Urban Development, Federal Housing Administration, is authorized to solicit the information requested in this form by virtue ofTitle 12, U.S. Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code ofFedera1 Regulations. Information in PHA plans is publicly available. Streamlined Annual PHA Plan for Fiscal Year: 2006-2007 City of Encinitas Housing Authority NOTE: This PHA Plan template (HUD-S0075-SA) is to be completed in accordance with instructions contained in previous Notices pm 99-33 (HA), 99-51 (HA), 2000-22 (HA), 2000-36 (HA), 2000-43 (HA), 2001- 4 (HA), 2001-26 (HA), 2003-7 (HA), and any related notices HUD may subsequently issue. H3-1 form HUD-50075-SA (0413012003) Streamlined Annual PHA Plan Agency Identification PHA Name: City of Encinitas Housing Authority PHA Number: CA155 PHA Fiscal Year Beginning: (mmlyyyy) 07/2006 PHA Programs Administered: OPubUc Housing and Section 8 ~Section 8 Only OPublic Housing Only Number of public housing units: Number ofS8 units: Number of public housing units: Number of S8 units: OPHA Consortia: (check box if submitting a joint PHA Plan and complete table) Participating PBAs PHA Program(s) Included In Programs Not In # 01 Units Code the Consortium the Consortium Each Program Participating PHA 1: Participating PHA 2: Participating PHA 3: PHA Plan Contact Information: Name: David Harris TDD: Phone: 760-633-2724 Email (ifavailable):dharris@ci.encinitas.ca.us Public Access to Information Information regarding any activities outlined in thi~lan can be obtained by contacting: (select aU that apply) ~ PHA's main administrative office U PHA's development management offices Display Locations For PHA Plans and Supporting Documents The PHA Plan reVised policies or program changes (including attachments) are available for public review and inspection. [8J Yes 0 No. If yes, select all that apply: [8J Main administrative office of the PHA o PHA development management offices o Main administrative office of the local, county or State government o Public library 0 PHA website 0 Other (list below) PHA Plan Supporting Documents are available for inspection at: (select all that apply) [8J Main business office of the PHA 0 PHA development management offices o Other (list below) Streamlined Annual PHA Plan 1-\3.5 form HUD-50075-SA (04130/2003) Fiscal Year 2006-2007 [24 CFRPart903.12(c)] Table of Contents [24 CPR 903.7(r)] A. PHA PLAN COMPONENTS o 1. Site-Based Waiting List Policies 903.7(b)(2) Policies on Eligibility, Selection, and Admissions o 2. Capital Improvement Needs 903.7(g) Statement of Capital Improvements Needed ~ 3. Section 8(y) Homeownership 903. 7(k)(1 )(i) Statement ofBomeownenhip Programs ~ 4. Project-Based Voucher Programs ~ 5. PHA Statement of Consistency with Consolidated Plan. Complete only ifPHA has changed any policies, programs, or plan components from its last Annual Plan. ~ 6. Supporting Documents Available for Review o 7. Capital Fund Program and Capital Fund Program Replacement Housing Factor, Annual Statement/Perfonnance and Evaluation Report o 8. Capital Fund Program 5- Year Action Plan B. SEPARATE BARD COpy SUBMISSIONS TO LOCAL BUD FIELD OFFICE Form BUD-SOO76, PHA Certifications of ComDliance with the PHA Plans and Related Ref!Ulations: Board Resolution to AccomDanv the Streamlined Annual Plan identifying policies or programs the PHA has revised since submission of its last Annual Plan, and including Civil Rights certifications and assurances the changed policies were presented to the Resident Advisory Board for review and comment, approved by the PHA governing board, and made available for review and ins ection at the PHA's rinci aloffice; Form BUD-S0070, Certification for a Drufl-Free Workolace: Form BUD-S0071, Certification of Payments to Influence Federal Transactions; and Form SF-LLL &SF-LLLa, Disclosure of Lobbvinfl Activities. f-t 3. G, form HUD-5007s..5A (04/30/2003) 1. Site-Based Waitin2 Lists lEli2ibilitv.. Selection.. Admissions Policies} 24 CFR Part 903.12(c), 903.7 2 A. Site-Based Waiting Lists-Previous Year 1. Has the PHA operated one or more site-based waiting lists in the previous year? If yes, complete the following table; ifnot skip to B. Site-Based Waiting Lists Development Date Initial mix of Current mix of Percent Information: Initiated Racial, Ethnic or Racial, EthDic or change (Name, number, Disability Disability between initial location) Demographics Demographics and current since Initiation of mix of Racial, SBWL Ethnic, or Disability demo2raphics 2. What is the number of site based waiting list developments to which families may apply at one time? 3. How many unit offers may an applicant turn down before being removed from the site- based waiting list? 4. 0 Yes 0 No: Is the PHA the subject of any pending fair housing complaint by BUD or any court order or settlement agreement? If yes, describe the order, agreement or complaint and describe how use of a site-based waiting list will not violate or be inconsistent with the order, agreement or complaint below: B. Site-Based Waiting Lists - Coming Year If the PHA plans to operate one or more site-based waiting lists in the coming year, answer each of the following questions; if not, skip to next component. 1. How many site-based waiting lists will the PHA operate in the coming year? 2. 0 Yes 0 No: Are ,any or all of the PHA's site-based waiting lists new for the upcoming year (that is, they are not part of a previously-BUD-approved site based waiting list plan)? If yes, how many lists? U 3. 1 form HUD-50075-SA (0413012003) 3. DYes D No: May families be on more than one list simultaneously If yes, how many lists? 4. Where can interested persons obtain more information about and sign up to be on the site- based waiting lists (select all that apply)? D PHA main administrative office o All PHA development management offices o Management offices at developments with site-based waiting lists D At the development to which they would like to apply D Other (list below) A. Capital Fund Program 1. 0 Yes 0 No Does the PHA plan to participate in the Capital Fund Program in the upcoming year? If yes, complete items 7 and 8 of this template (Capital Fund Program tables). Ifno, skip to B. 2. D Yes D No: Does the PHA propose to use any portion of its CFP funds to repay debt incurred to finance capital improvements? If so, the PHA must identify in its annual and 5-year capital plans the development(s) where such improvements will be made and show both how the proceeds of the financing will be used and the amount of the annual payments required to service the debt. (Note that separate HUD approval is required for such financing activities.). H- 3. 8 form HUD-50075-SA (0413012003) B. HOPE VI and Public Housing Development and Replacement Activities (Non- Ca ital Fund 1. 0 Yes 0 No: Has the PHA received a HOPE VI revitalization grant? (if no, skip to #3; if yes, provide responses to the items on the chart located on the next page, copying and completing as many times as necessary). 2. Status of HOPE VI revitalization grant(s): HOPE VI Revitalization Grant Status a. Development Name: b. Development Number: c. Status of Grant: DRevitalization Plan under development DRevitalization Plan submitted, pending approval DRevitalization Plan approved DActivities pursuant to an approved Revitalization Plan underw~ 3. 0 Yes 0 No: Does the PHA expect to apply for a HOPE VI Revitalization grant in the Plan year? If yes, list development name( s) below: 4. 0 Yes 0 No: Will the PHA be engaging in any mixed-finance development activities for public housing in the Plan year? If yes, list developments or activities below: 5. 0 Yes 0 No: Will the PHA be conducting any other public housing development or replacement activities not discussed in the Capital Fund Program Annual Statement? If yes, list developments or activities below: 3. Section 8 Tenant Based Assistance-Section 8 1. ~ Yes 0 No: Does the PHA plan to administer a Section 8 Homeownership program pursuant to Section 8(y) of the U.S.H.A. of 1937, as implemented by 24 CFR part 982 ? (If''No'', skip to the next component; if''yes'', complete each program description below (copy and complete questions for each program identified.) H- 3. 9 form HUD-50075-SA (0413012003) 2. Program Description: a. Size of Program ~ YesD No: Will the PHA limit the number of families participating in the Section 8 homeownership option? If the answer to the question above was yes, what is the maximum number of participants this fiscal year? 2 b. PHA-established eligibility criteria DYes ~ No: Will the PHA's program have eligibility criteria for participation in its Section 8 Homeownership Option program in addition to HUD criteria? If yes, list criteria: c. What actions will the PHA undertake to implement the program this year (list)? Since the price of homes in Encinitas are beyond the budget oflow-income households, the only units that lower-income tenants may afford are restricted units developed and sold under the City's affordable housing programs. These affordable units have resale restrictions on the title to ensure the affordability for 30 to 55 years. The HA will notify potential participants of any affordable homeownership opportunities that become available. 3. Capacity of the PHA to Administer a Section 8 Homeownership Program: The PHA has demonstrated its capacity to administer the program by (select all that apply): D Establishing a minimum homeowner downpayment requirement of at least 3 percent of purchase price and requiring that at least 1 percent of the purchase. price comes from the family's resources. [gI Requiring that financing for purchase of a home under its Section 8 homeownership will be provided, insured or guaranteed by the state or Federal government; comply with secondary mortgage market underwriting requirements; or comply with generally accepted private sector underwriting standards. [gI Partnering with a qualified agency or agencies to administer the program (list name(s) and years of experience below): ACORN Housing Corporation D Demonstrating that it has other relevant experience (list experience below): 4. Use of the Proiect-Based Voucher Proeram Intent to Use Project-Based Assistance DYes [gI No: Does the PHA plan to "project-base" any tenant-based Section 8 vouchers in the coming year? If the answer is ''no,'' go to the next component. If yes, answer the following questions. H,- 10 form HUD-50075-5A (0413012003) 1. DYes D No: Are there circumstances indicating that the project basing of the units, rather than tenant-basing of the same amount of assistance is an appropriate option? If yes, check which circumstances apply: D low utilization rate for vouchers due to lack of suitable rental units D access to neighborhoods outside of high poverty areas D other (describe below:) 2. Indicate the number of units and genera1location of units (e.g. eligible census tracts or smaller areas within eligible census tracts): 5. PHA Statement of Consistency with the Consolidated Plan 24 CFR Part 903.15] [8] D [8] [8] D 1. Consolidated Plan jurisdiction: City of Encinitas 2. The PHA has taken the following steps to ensure consistency of this PHA Plan with the Consolidated Plan for the jurisdiction: (select all that apply) The PHA has based its statement of needs of families on its waiting lists on the needs expressed in the Consolidated Plan/so The PHA has participated in any consultation process organized and offered by the Consolidated Plan agency in the development of the Consolidated Plan. The PHA has consulted with the Consolidated Plan agency during the development of this PHA Plan. Activities to be undertaken by the PHA in the coming year are consistent with the initiatives contained in the Consolidated Plan. (list below) Other: (list below) 3. The Consolidated Plan of the jurisdiction supports the PHA Plan with the following actions and commitments: (describe below) H 3. t I fonn HUD-50075-SA (04/30J2003) 6. Supportin2 Documents Available for Review for Streamlined Annual PHA Plans PHAs are to indicate which documents are available for public review by placing a mark in the "Applicable & On Display" column in the appropriate rows. All listed documents must be on display if applicable to the program activities conducted by the PHA. . List of SunnnrtinlJ Documents A vaUable for Review Applicable Supporting Document Related Plan Component &On DisDlav PHA Certifications of Compliance with the PHA Plans and Related Regulations 5 Year and Annual Plans and Board Resolution to Accompany the Standard Annual, Standard Five- Year, and Streamlined Five-Year/Annual Plans; X PHA Certifications of Compliance with the PHA Plans and Related Regulations Streamlined Annual Plans and Board Resolution to Accomoanv the Streamlined Annual Plan Certification by State or Local OjJicial of PHA Plan Consistency with 5 Year and standard Annual Consolidated Plan. Plans X Fair Housing Documentation Supporting Fair Housing Certifications: Records 5 Year and Annual Plans reflecting that the PHA has examined its programs or proposed programs, identified any impediments to fair housing choice in those programs, addressed or is addressing those impediments in a reasonable fashion in view of the resources available, and worked oris working with local jurisdictions to implement any of the jurisdictions' initiatives to affirmatively further fair housing that require the PHA's involvement. X Housing Needs Statement of the Consolidated Plan for the jurisdiction(s) in which the Annual Plan: PHA is located and any additional backup data to support statement of housing needs for Housing Needs families on the PHA's ooblic housinll and Section 8 tenant-based waitinlllists. X Most recent board-approved operating budget for the public housing program Annual Plan: Financial Resources X Public Housing Admissions and (Continued) Occupancy Policy (A&O/ACOP), Annual Plan: Eligibility, which includes the Tenant Selection and Assignment Plan [TSAP} and the Site- Selection, and Admissions Based Waitin~ List Procedure. Policies Deconcentration Income Analysis Annual Plan: Eligibility, Selection, and Admissions Policies Any policy goveming occupancy of Police Officers and Over-Income Tenants in Annual Plan: Eligibility, Public Housing. 0 Check here if included in the public housing A&O Policy. Selection, and Admissions Policies X Section 8 Administrative Plan Annual Plan: Eligibility, Selection, and Admissions Policies Public housing rent determination policies, including the method for setting public Annual Plan: Rent housing flat rents. Determination o Check here if included in the Dublic housinl!: A & 0 Policv. Schedule of flat rents offered at each public housing development. Annual Plan: Rent o Check hereifincluded in the Dublic housing A & 0 Policy. Determination Section 8 rent determination (payment standard) policies (if included in plan, not Annual Plan: Rent necessary as a supporting document) and written analysis of Section 8 payment Determination standard policies: ~ Check here if included in Section 8 Administratiye Plan. Public housing management and maintenance policy documents, including policies for Annual Plan: Operations and the orevention or eradication of nest infestation (includinll cockroach infestation). Maintenance Results of latest Public Housing Assessment System (pHAS) Assessment (or other Annual Plan: Management applicable assessment). . and Operations Follow-up Plan to Results of the PHAS Resident Satisfaction Survey (if necessary) Annual Plan: Operations and Maintenance and Community Service & Self-Sufficiency X Results of latest Section 8 Manallement Assessment System (SEMAP) Annual Plan: Manal!:ement fonn HUD-SO075-SA (0413012003) f-t~. I~ List of SUDDortintl Documents Available for Review Applicable Supporting Document Related Plan Component &On Display and Ooerations Any policies governing any Section 8 special housing types Annual Plan: Operations and o Check here if included in Section 8 Administrative Plan Maintenance Public housing grievance procedures Annual Plan: Grievance [] Check here if included in the public housin2 A & 0 Policy Procedures Section 8 informal review and hearing procedures. Annual Plan: Grievance 181 Check here if included in Section 8 Administrative Plan. Procedures The Capital Fund/Comprehensive Grant Program Annual Statement /Performance Annual Plan: Capital Needs and Evaluation Reoort for any active 2r8Dt year. Most recent ClAP Budget/Progress Report (HUD 52825) for any active ClAP Annual Plan: Capital Needs 2r8Dts. Approved HOPE VI applications or. if more recent. approved or submitted HOPE VI Annual Plan: Capital Needs Revitalization Plans. or any other aooroved for development of DUblic housinlt. Self-evaluation, Needs Assessment and Transition Plan required by regulations Annual Plan: Capital Needs implementing Section 504 of the Rehabilitation Act and the Americans with Disabilities Act. See PIH Notice 99-52 (HA). Approved or submitted applications for demolition and/or disposition of public housing. Annual Plan: Demolition and Disposition Approved or submitted applications for designation of public housing (Designated Annual Plan: Designation of Housinlt Plans). Public Housing Approved or submitted assessments of reasonable revitalization of public housing Annual Plan: Conversion of and approved or submitted conversion plans prepared pursuant to section 202 of Public Housing the 1996 HUD Appropriations Act. Section 22 of the US Housing Act of 1937. or Section 33 of the US Housinlt Act of 1937. Documentation for required Initial Assessment and any additional information Annual PIan: Voluntary reauired by HUD for Voluntary Conversion. Conversion of Public Housin2 Approved or submitted public housing homeownership programs/plans. Annual Plan: Homeownershio X Policies governing any Section 8 Homeownership program Annual Plan: (Section XIII of the Section 8 Administrative Plan) Homeownershio Public Housing Community Service PolicylPrograms Annual Plan: Community o Check here if included in Public Housinlt A & 0 Policy Service & Self-Sufficiency Cooperative agreement between the PHA and the T ANF agency and between the Annual Plan: Community PHA and local ernoloyment and trainin2 service aJ;!encies. Service & Self-Sufficiency FSS Action Plan(s) for public housing and/or Section 8. Annual Plan: Community Service & Self-Sufficiency Section 3 documentation required by 24 CFR Part 135. Subpart E for public Annual Plan: Community housin2. Service & Self-Sufficiency Most recent self-sufficiency (ED/SS, TOP or ROSS or other resident services Annual Plan: Community grant) grant oro2l'llll1 reports for public housing. Service & Self-Sufficiency Policy on Ownership of Pets in Public Housing Family Developments (as required Annual Plan: Pet Policy by regulation at 24 CFR Part 960, Subpart G). [] Check here if included in the public housing A & 0 Policy. X The results of the most recent fiscal year audit of the PHA conducted under the Annual Plan: Annual Audit Single Audit Act as implemented by OMB Circular A-133, the results of that audit and the PHA's response to any findinJ;!s. Other supporting documents (optional) (specify as needed) (list individually; use as many lines as necessary) Consortium agreement(s) and for Consortium Joint PHA Plans Only; Certification Joint Annual PHA Plan for that consortium agreement is in compliance with 24 CFR Part 943 pursuant to an Consortia: Agency opinion of counsel on file and available for inspection. Identification and Annual Mana2ement and Ooerations form HUD-5007S-5A (04/3012003) H?:>- l~ Attachment "B" Section 8 Administrative Plan Text Amendment i~ 3 - ( t Insert Section VI B (3) as follows: 3. Disallowance of Earned Income for Persons with Disabilities The annual income for aualified families may not be increased as a result of increases in earned income of a family member who is a oerson with disabilities bellinninll on the date on which the increase in earned income bellins and continuinll for a cumulative twelve- month oeriod. After-the disabled familv member receives twelve cumulative months of the full exclusion. annual income will include a Dbase-in of half the earned income excluded from annual income. The ERA will aDDlv the regulation accordinll to 24 CFR 5.617: 982.201 (b)(3). Insert new Section VI C (3), Allowable Deductions, as follows: 3. $400 household allowance for each elderly or disabled household Renumber Section VI C (3) to VI C (4): ;A. Child care expenses: ... Amend Section VII A (1) asfollows: 1. Verification of CitizenshiD/ElilZible Immiszration Status. To be eligible for assistance, individuals must be u.S. citizens or eligible immigrants. Individuals who are neither may elect not to contend their status. Eligible immigrants must fall into one of the categories specified by the regulations and must have their status verified by the Immigration and Naturalization Service (INS). Each Household member must declare their status once. Assistance cannot be delayed, denied, or terminated while the verification of status is pending except that assistance to the applicants may be delayed while the ERA hearing is pending. The ERA will aDDlv the reszulation accordinll to 24 CFR 5.508. 5.510. 5.512. 5.514. Amend Section XI C (2) as follows: 2. R-eBt FElase:aableaess sllall be EletermiBeEl by the inspeetefS, Based ea ar.ffilal Barley eeBEkleted By the Heasiag :\atheFity market 8:Balyst. The S\:lrley shall Be k~t BY eeB51:1B 1faek in efEler te pFElVeftt higher Feat eeiag gF8ftteEl thea these '::hieft 8fe a~FBpriate fer a eemp8:faBle aait ia the same BeiglHleraeed.Rent Reasonableness. The Duroose of the Rent Reasonableness Test is to assure that a fair rent is Daid for units selected for Darticillation in the. Rental Assistance Proszram and the DrolZram does not have the effect of inflatinll rents in the community. Rent reasonableness determinations are made when units are Dlaced under contract for the first time. before any increase in rent to the owner. and if there is a 5% decrease in the Dublished Fair MarketRent. The ERA will determine whether the rent to owner is a reasonable rent in comparison to rent for other comDarable unassisted units. To make this.determination. the EHA will consider: e The location. size. unit tvoe. auality. and aile of the unit. e Anv amenities. housinll services. maintenance and utilities Drovided bv the owner under the lease. H3-15