1995-04-19 (Report)
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CITY OF EN'CINITAS
l\GENDA REPORT
HOUSING AUTHORITY
Meeting Date: April 19, 1995
TO: Board of Commissioners
VIA:f5
~auren M. Wasserman
Secretary of the Board/Executive Director
FROM: Community Development Department
~~andra L. Holder, Community Development Director
(,.0 Lynn Brown, Housing a~d Grants Coordinator i{r
,~JnBJECT:
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Adoption of Resolution 95-02 authorizing execution Qf:"an Annual Contributions Contract between
the u.s. Department of Housing and Urban Development (HUD) and the Housing Authority of the.
City of Encinitas to administer 28 Section 8 Project based certificates for the Su Casa Community
Housing Association (SUCHA),
IS.SUE:
Whether to adopt Resolution 95-02 authorizing execution of an Annual Contributions Contract
between the U.S, Department of Housing and Urban Development (HUD) and the Housing Authority
of the City of Encinitas to administer 48 Section 8 Project based certificates for the Su Casa
Community Housing Association (SUCHA),
BACKGROUND:
The City awarded $125,000 to North Coast Housing on March 23, 1994, to assist with the purchase
of the 30 unit Su CasaApartments located at 620 Melba Rd. The U.S. Department of Housing and
UrblUl Development (HUn) has reserved Section 8 subsidies for the project. The reservation is for
certificates 28 out of30 units in the project. HUn is currently processing the Su easa insured loan
to purchase the Su Casa project.
ANALYSIS:
;/"" Congress is considering rescinding funding for Section 8 project based certificates in conjunction with
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(( the Title VI Low Income Housiug Preservation and Resident Homeownership Act. The conference
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committee is scheduled to consider the rescission bill the week of April 25. The reservation of the
subsidy funds is a HUJj administrative action. It does not legally commit HUD t<? provide the funds
and does not protect the subsidies from Congressional rescission of funds. There are two ways to
legally secure the Section 8 funds:
. The new nonprofit owner, Su Casa Community Housing Association ( North Coast Housing
and tenants of Su Casa) could close on the purchase of the property and sign a Section 8
contract directly with HUn. However, this option is not available to Su Casa because the
loan processing on the purchase will be delayed past the April 25 deadline.
.
BUD could sign a contract for the Section 8 project based certificates with a housing
autholity who will administer the funds for the project.
,
North Coast Housing and SUCHA are requesting that the Houshlg Authority enter into a new Annual
Contributions Contract with HUD for the 28 Section 8 certificates. As part of the project closing,
the Housing Authority'will sign a contract with SUCHA to administer all the certificates. Normally
SUCHA would be responsible for the contract with HUD and all of the administration. With the
Housing Authority cOl1tracting with HUn, the Authority would be responsible for receiving the funds
from HUD and then paying SUCHA for the rents. For performing this administrative task the
Housing Authority would receive a fee. of 3% of the Fair Market Rent or $6965 a year under the
current year Fair Market Rent guidelines,
If in the unlikely event that Congress restores the fbnding to this program or the rescission bill is
vetoed, HUD would not sign the ACC with the Housing Authority, but would use its nonnal
procedure of directly contracting with SUCHA.
Resolution 95-02 authorizes the Chairperson of the Housing Authority Board to execute an Annual
Contributions Contract and other documents HUn may require.
FISCAL AND STAFF IMPACTS:
The Housing Authority would receive a fee of3% of the Fair Market Rent or $6965 a year under the
current year Fair Market Rent guidelines, The Fair Market Rent could go up or down varying slightly
the amount received,
RECOMMENDATION:
Adopt Resolution 95-02 authorizing the Chairperson of the Board to execute an the Annual
Contributions Contract between the U.S, Department of Housing and Urban Development (HUD)
and the Housing Authority of the City of Encinitas to administer 28 Section 8 Project based
certificates for the Su Casa Community Housing Association (SUCHA).
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RESOLUTION NO. 95-02
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RESOLUTION OF
THE HOUSING AUTHORITY OF THE CITY OF ENCINITAS
AUTHORIZING AMENDMENT TO EXISTING OR EXECUTION OF
NEW SECTION 8 ANNUAL CONTRIBUTIONS CONTRACT
FOR SU CASA POR CORTEZ AND AUTHORIZING EXECUTION OF DOCUMENTS
WHEREAS, Su CasaPor Cortez, apartment complex. located at 620 Melba Rd., Encinitas,
California, is under contract to Su Casa Community Housing Association, a California nonprofit
corporation (the "Buyer") in order to preserve the affordability of the complex; and
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WHEREAS, the United States Department of Housing and Urban Development ("HUD") has
approved the Buyer's Plan of Action submitted pursuant to the Low Income Housing Preservation
and Resident Homeownership Act and HUD has reserved funding for 28 units of project-based
Section 8 rental assistance as one new Housing Assistance Payments ("HAP") contract; and
WHEREAS, the Buyer and HUD may request the Housing Authority to administer the
Section 8 HAP contract with the Buyer, and should HUD make such a request to the Housing
Authority, either an am~ndment to the Housing Authority's existing Section 8 Annual Contributions
Contract with HOD or a new ACC providing the Housing Authority with funding adequate to permit
the Section 8 subsidies to be provided to theB~yer (the "ACC") will be required.
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AUTHORITY OF THE CITY OF
ENCINITAS AS FOLLOWS:
1. Upon the request ofHUD, the Housing Authority agree~ to administer the HAP contract
for Su Casa Por Cortez; and
2. Upon request ofHUD, the Chairperson or designee of the Housing Authority isauthorlzed
to execute the HAP contract, the ACC, the Agreement to Ent(':r into a Housing Assistance
Payments Contract, and any other documents HUD may require including, but not limited to,
an administration agreement related to Su Casa Por Cortez.
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P AS SED AND ADOPTED at a special meeting of the Board of Commissioners of the Housing. 0
Authority of the City ofEncinitas, held 19th day of April) 1995 by the following vote:
AYES:
NAYS:
jABSENT:
ATTEST:
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Lauren, M. Wasserman
i~ Secretary
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Chuck Du Vivier
Chairperson of the Board
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