Housing - Sec 8 Contract RenewaCITY OF DUBUQUE, IOWA
MEMORANDUM
August 1, 2001
TO:
FROM:
SUBJECT:
The HonOrable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Renewal of Section 8 Housing Contract
Housing and Community Development Department Director David Harris is
recommending approval of the renewal contract for Section 8 housing for the Garfield
single room occupancy project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
1 August
To: Mike Van MiIligen, City Manager
From: David Harris, Housing and Community Development Department
Re: Renewal of Section 8 Housing Contract
Introduction
The purpose of this memorandum is to request the City Council's approval of a
renewal contract for Section 8 housing.
Discussion
The Housing Services Department successfully applied in national competition,
in 1990, for a Section 8 "Moderate Rehabilitation Program" single room
occupancy (SRO) facility, to provide housing for homeless men. A $358 000
award was received, which was in tum contracted to the owner of a former
railroad hotel located at 601 Garfield Avenue. Les Brotzman converted this
building into a 13-room SRO and has operated it continuously for the past ten
years for homeless men receiving rental assistance through the Housing
Department's Section 8 Program.
This award was for a 10-year contract which has now expired. The Department
of Housing and Urban Development (HUD) has offered the opportunity of
renewal of this contract, to be made on a year-to-year basis.
Accordingly, the request of the Council isto approve contract renewal, in order to
continue the availability of these rooming units to qualifying men in need of
shelter.
Recommendation
It is recommended that the City Council authorize the Mayor to execute the
attached contracts, renewing funding for lfle 'Garfield SRO," authorized by HUD
as Program No. IA05-K087-007.
att
CITY OF DUBUQUE, IOWA
MEMORANDUM
1 August 01
To: Mike Van~lligen, City Manager
F D ''~
rom: avid Harris, Housing and Community Development Department
Re: Renewal of Section 8 HOusing Contract
Introduction
The purpose of this memorandum is to request the City Council's approval of a
renewal contract for Section 8 housing.
Discussion
The Housing Services Department successfully applied in national competition,
in 1990, for a Section 8 ~Moderate Rehabilitation Program" single room
occupancy (SRO) facility, to provide housing for homeless men. A $358 000
award was received, which was in turn contracted to the owner of a former
railroad hotel located at 601 Garfield Avenue. Les Brotzman converted this
building into a 13-room SRO and has operated it continuously for the past ten
years for homeless men receiving rental assistance through the Housing
Department's Section 8 Program.
This award was for a 10-year contract which has now expired. The Department
of Housing and Urban Development (HUD) has offered the opportunity of
renewal of this contract, to be made on a year-to-year basis.
Accordingly, the request of the Council is to approve contract renewal, in order to
continue the availability of these rooming units to qualifying men in need of
shelter.
Recommendation
It is recommended that the City Council authorize the Mayor to execute the
attached contracts, renewing funding for the "Garfield SRO," authorized by HUD
as Program No. IA05-K087-007.
att
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Section 8 Moderate Rehabilitation Single Room Occupancy Program
Annual Contributions Contract
TABLE OF SECTIONS
1.I THE PROGRAM .................................................................................
1.2 AUTHORIZATION OF ACTIONS BY HA ................................................................................................. 1
1.3 FUNDING AND TERM ............................................................................................................................... 2
1.4 ANNUAL CONTRIBUTIONS ..................................................................................................................... 2
1.5 HUD PAYMENTS FOR THE PROGRAM .................................................................................................. 2
1.6 FISCAL YEAR .............................................................................................................................................. 3
1.7 PERIODIC ADJUSTMENT OF CONTRACT RENTS ................................................................................ 3
1.8 EXPEDITIOUS CARRYliNG OUT OF PROJECT ......................................................................................3
1.9 ASSISTANCE TO ELIGIBLE INDIVIDUALS WHEN CONTRACTS ARE TERMINATED .................. 3
1.10 RESPONSIBILITY FOR ADMINISTRATION OF CONTRACT ............................................................... 3
I. 11 HUD REQUIREMENTS ............................................................................................................................... 4
1.12 EXCLUSION OF ~ PARTY RIGHTS ....................................... · ......................................................... 4
1,13 DEPOSITARY ...................................................................................................
1,14 PROGRAM RECORDS .................................................................................................................................. 4
1.15 DEFAULT BY HA .......................................................................................................................................... 5
1.16 FIDELITY BOND COVERAGE .................................................................................................................... 5
1.17 EXCLUSION FROM PROGRAM .................................................................................................................. 5
06/28/2001
1.18 CONFLICT OF INTEREST PROVISIONS ................................................................................................... 5
1.19 INTEREST OF M~MBER OF OR DELEGATE TO CONGRESS ................................................................ 6
.20 LABOR STANDARDS ................................................................................................................................... 6
.21 SECTION 3 REQUIREMENTS ..................................................................................................................... 6
.22 EQUAL EMPLOYMENT OPPORTUNITY .................................................................................................. 7
.23 ACC ................................................................................................................................................................. 7
06/28/2001
U.S. Department of Hous'mg
and Urban Development
Annual Contributions Contract
Section 8 Moderate Rehabilitation
Single Room Occupancy (SRO) Program
1.1 THE PROGRAM
(a) PROJF_Xrrs IN PROGRAM
The HA's Program under this ACC
includes all projects listed in the
funding exhibit attached to this ACC.
(2)
The HA, to the maximum extem
feasible, shall enter into Agreements
and Contracts in accordance with the
number of units in each project
specified in the funding exhibit. No
substantial deviation as defined by
HUD fi'om the number of units in
each project is allowed without prior
HUD approval. The HA shall not
enter into any Agreements or
Contracts or take any other action
which will result in a claim for an
Annual Contribution in respect to any
project in excess of the maximum
amount authorized for that project.
(b) The term "HA" means the
Hous'mg Agency which has executed
this ACC.
(c) The term "HUD" means the
United States Department of Housing
and Urban Development.
(d) The term "Program Receipts"
means amount paid by HUD
to the HA for the Program, and any other
amounts received by the HA in connection
with the Program.
(e) The term "project" means each funding
increment in the HA's Program.
1.2 AUTHORIZATION OF ACTIONS BY HA
In order to carry out the project, the HA is autho-
rized to (a) enter into Agreements, (b) enter into
Contracts, (c) make housing assistance payments on
behalf of eligible individuals and (d) take all other
necessary actions, all in accordance with the appli-
cation, forms, conditions and requirements
prescribed
or approved by HHD. However, neither the HA nor
HOD shall assume any obligations beyond those
provided in the prescribed forms of Agreement and
Contract.
1.3 FUNDING AND TERM
(a)
The projects (funding increments) in the
HA's Moderate Rehabilitation SRO Program
are listed in the funding exhibit to this ACC:
The funding exhibit states the amount and
term of funding for each project.
(b)
The amount of contract and budget authority
for each project in the HA's Moderate
Rehabilitation SRO Program is stated in the
funding exhibit. "Contract Authority" is the
maximum annual payment by HUD to the
HA for a project. "Budget Authority" is the
maximum amount of funds available for
payment to the HA over the term of the
06/28/2001
ACC: Section 8 Moderate Rehabilitation SRO Program
project. Budget authority is authorized and
appropriated by the Congress.
(c) The funding exhibit states the first date and last
date of the ACC term for each project.
(d)
By giving written notice to the HA, HLrD may
revise the funding exhibit to add budget
authority to an existing project (funding
increment), to add a funding increment or to
remove a funding increment for which the ACC
term has expired.
The HUD notice must include a revised
funding exhibit, specifying the term and
budget authority for each funding exhibit
constitutes an amendment of the ACC.
1.4 ANNUAL CONTRIBUTIONS
(a)
HUD shall not make any Annual
Contributions or any other payment with
respect to any Fiscal Year for a project in
excess of the contract authority for the
project specified in the funding exhibit.
However, this amount shall be reduced
commensurately with any reduction in the
number of Contract Units or pursuant to any
other provision of this ACC or the Contract.
The total amount of payments for a project
over the project term must not exceed budget
authority for the project specified in the
Funding Exhibit.
1.5 HUD PAYMENTS FOR THE PROGRAM
(a)
HUD will make payments to the HA in
accordance with HUD regulations and
requirements.
(b)
For each HA Fiscal Year, HUD will pay the
HA the amount approved by HUD to
cover the following (subject to reduction by
the amount of any Project Receipts other
than Annual Contributions- such as interest
(c)
(d)
income--which Receipts shall be available
for Project Expenditures):
(1) The amount of housing assistance
payments payable during each Fiscal
Year by the HA pursuant to Contracts
with owners. (Such payments may
not be made for mom than 10 years
for any unit.)
(2) The allowance, in the amount
approved by HUD, for preliminary
costs of administration.
(3) The allowance, in the amount
approved by HUD, for the regular
costs of administration including
costs of HUD reqaired audits of
Owners and the HA.
A Project Account shall be established and
maintained for each project under this ACC,
in an amount as determined by HUD, out of
amounts by which the contract authority for
the project exceeds amounts paid under the
ACC for the project for any Fiscal Year.
This account shall be established and
maintained by HUD as a specifically
identified and segregated account. To the
extent funds are available in this account, the
maximum amount payable by HUD for any
Fiscal Year may be increased by an amount,
if any, as may be required for increases
reflected in the estimate of required Annual
Con~ribmion applicable to the Fiscal Year as
approved by HUD.
HUD will make periodic payments on
account of each project upon requisition by
the HA in the form prescribed by HUD.
Each requisition shall include certification by
the HA that housing assistance payments
have been or will be made only:
(1) In accordance with the provisions of
the Contract, and
(2) With respect to units which the HA
has inspected 'or caused to be
inspected and determined to be in
decent, safe and sanitary condition,
06/28/2001
ACC: Section 8 Moderate Rehabilitation SRO Program
(e)
within one year prior to the making of
housing assistance payments.
Following the end of each Fiscal Year, any
amount by which the total payments made
during that Fiscal Year exceed the Annual
Conaibution payable in accordance with this
sectidn will be subtracted from the next
payment made by HUD to the HA, unless
other disposition is approved or required by
HUD.
1.6 FISCAL YEAR
1.7
1.8
1.9
The funding exhibit states the last month and day of
the HA Fiscal Year.
PERIODIC ADJUSTMENTS OF CONTRACT
RENTS
The Cona'act will provide for periodic adjusm~ents
in the Contract Rents, in accordance with applicable
HUD regulations, up to the maximum amount
authorized for housing assistance payments in the
HUD-approved estimate submitted by the HA.
EXPEDITIOUS CARRYING OUT OF
PROJECT
The HA shall proceed expeditiously to implement
the Program consistent with the rehabilitation and
leasing schedule for each Ixoject. If the HA falls to
proceed expeditiously, HUD may terminate or
reduce its obligation under this ACC with respect to
the project~
ASSISTANCE TO ELIGIBLE INDIVIDUALS
WHEN CONTRACTS ARE TERMINATED
When the Contract for any unit(s) is terminated for
any reason, leaving budget authority available under
this ACC, the assisted individual(s), if eligible for
continued assistance, or other eligible individuals, if
the unit(s) is vacant, may continue to receive
Housing assistance for the remainder of the ACC
term in accordance with HUD regulations by the use
1.10
of the SRO funding for Rental Certificate or
Voucher assistance.
RESPONSIBILITY FOR ADMINISTRATION
OF CONTRACT
The HA is responsible for administration of the
Contract, subject to review and audit by HUD.
1.11 HLrD REQUIREMENTS
(a)
The HA must comply, and must require
owners to comply, with the requirements of
the U.S. Housing Act of 1937, the
McKiuney-Vento Homeless Ass!stance Act
and all HUD regulations and other re-
quirements, including any amendments or
changes in the law or HUD requirements.
Co)
The HA must comply with its HUD-
approved administrative plan including the
contents of the equal opportunity housing
plan as well as any subsequent changes to it
and the HUD-approved application for
Program funding.
(c)
The HA must use the Program forms
required by HUD.
1.12 EXCLUSION OF THIRD PARTY RIGHTS
(a)
An individual that is eligible for housing
assistance under this ACC is not a party to or
third party beneficiary of the ACC.
Nothing in the ACC shall be construed as
creating any right of any third party to
enforce any provision of this ACC, or to
assert any claim against HUD or the HA.
1.13 DEPOSITARY
(a)
Unless otherwise requked or permitted by
HUD, all Program Receipts must be
promptly deposited with a financial
institution selected as the depository
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ACC: Section 8 Moderate Rehabilitation SRO Program
by the HA in accordance with HUD
reqnirements.
(b)
The HA must enter an agreement with the
depository institution in the form required by
HUD.
(c)
The ItA may only withdraw deposited
Program Receipts for use in connection with
the Program in accordance with HUD
requirements.
(d)
The agreement with the depository institution
must provide that if required under a written
notice from HUD to the depository:
(1) The depository must not permit any
withdrawal of deposited funds by the
HA unless withdrawals by
the HA are expressly authorized by
written notice from HUD to the
depository.
(2) The depository must permit with-
drawals of deposited funds by HUD.
If approved by HUD, the HA may deposit
under the depository agreement monies
received or held by the HA in
connection with any conmict betwe~.n the
HA and HUD.
1.14 PROGRAM RECORDS
(a)
The HA must maintain complete and
accurate books of account and records for the
Program. The books and records must be in
accordance with HUD requirements, and
must permit a speedy and effective audit.
(b)
The HA must furnish HUD such financial
and Program reports, records, statements,
and documents at such times, in such form,
and accompanied by such supporting data, as
required by HUD.
(c) HUD and the Comptroller General of the
United States, or their duly authorized
representatives, must have full and free access
to all HA offices and facilities, and to all the
books, documents and records of the HA
relevant to administration of the Program,
including the right to audit and to make copies.
(d)
The HA must engage and pay an inde-
pendent public accountant to conduct audits
that are reqnired by HUD. The cost of audits
required by HUD may be charged against
Program Receipts.
1.15 DEFAULT BY I-IA
(a) Upon written notice to the HA, HUD may
take possession of all or any HA property,
fights or interests in connection with the
Program, including funds held by a
depository, Program Receipts, and rights or
interests under a contract for housing
assistance payments with an owner, if HUD
detexmines that:
(1) The HA has failed to comply with
any obligations under this ACC; or
(2) The HA has failed to comply with
obligations under a contract for
housing assistance payments with an
owner, or has failed to take ap-
propriate action, to HUD's saris-
faction or as directed by HUD, for
enforcement of the HA's rights under
a contract for housing assistance pay-
ments (including requiring actions by
the owner to cure a default,
termination, or reduction
of housing assistance payments,
termination of the contract for
housing assistance payments
termination of the contract for
housing assistance payments, or
(recovery of overpayments); or
(4) The HA has made any misrepre-
sentation to I-ILrD of any material
fact.
(b) HUD's exercise or non-dxemise of any right
or remedy under this ACC is not a waiver of
HUD's right to exercise that or any other
right or remedy at any time.
06/28/2001
ACC: Section 8 Moderate Rehabilitation SRO Program
1.16 FIDELITY BOND COVERAGE
The HA must carry adequate fidelity bond coverage,
as required by HUD, of its officers, agents, or
employees handling cash or authorized to sign
checks or certify vouchers.
1.17 EXCLUSION FROM PROGRAM
Recipients of public assistance may not be excluded
from participation in or be denied the benefit of the
Program because of such status.
1.18 CONFLICT OF INTEREST PROVISIONS
(a) Neither the HA nor any of its contractors or
their subcontractors may enter into any contract,
subcontract, or arrangement in connection with
the Program in which any of the following
classes of persons has an interest, direct or
indirect, during tenure or for one year
thereafter:
(1) Any present or former member or
officer of the HA (except a tenant
commissioner).
(2) Any employee of the HA who
formulates policy or who influences
decisions with respect to the Program.
(3) Any public official, member of a
governing body, or State of local
legislator who exercises functions or
responsibilities with respect to the Program.
Any member of these classes of persons must
disclose the member's interest or prospective
interest to the HA and HUD.
The requirements of this section may be
waived by HUD for good cause. No person
for whom a waiver is granted shall be
permitted to exercise responsibilities or
functions with respect to a contract for
housing assistance payments executed, or to
be executed, on his or her behalf, or with
respect to a contract for housing assistance
payments to which this person is a party.
(d)
The provisions of this section do not apply to
the depository agreement, or to utility service
for which the rotes are fixed or controlled by
a governmental agency.
1.19 INTEREST OF MEMBER OF OR DELEGATE
TO CONGRESS
No member of or delegate to the Congress of the
United States of America or resident commissioner
shall be admitted to any share or part of this ACC or
to any benefits which may arise from it.
1.20 LABOR STANDARDS
The HA shall incorporate or cause to be
incorporated into any contract for moderate
rehabilitation of nine or more assisted units such
clause or clauses as are required by HUD for
compliance with its regulations issued pursuant to
the Copeland Act, the Davis-Bacon Act, and the
Contract Work Hours and Safety Standards Act.
The HA shall cooperate with HUD in conducting
compliance reviews pursuant to these Acts and
regulations.
1.21 SECTION 3 REQUIREMENTS
Subject to the threshold provisions of 24 CFR
135.3, the requirements of Section 3 of the
Housing and Urban Development Act of 1968,
as amended, and HUD's implementing
regulations at 24 CFR part 135 are applicable to
projects assisted under this ACC.
Notwithstanding any other provision of this ACC,
the HA shall carry out the provisions of Section 3,
the regulations at 24 CFR part 135, and all
applicable rules and orders.issued thereto prior to
the execution of this ACC. The HA certifies and
agrees that it is under no contractual or other
disability which would prevent il: from complying
with these requirements. Compliance with these
provisions prior to approval by HUD oftbe
application for this ACC shall be a condition of the
06/28/2001
ACC: Section 8 Moderate Rehabilitation SRO Program
Federal financial assistance provided to the project,
binding upon the HA, its successors and assigns.
Failure to fulfill these requirements shall subject
the HA, its contractors and subcontractors, its
successors and assigns to the sanctions specified
by this ACC and such sanctions as specified by
24 CFR 135.76(g) or any successor provisions.
The HA shall incorporate or cause to be
incorporated into any contract pursuant to this
ACC such clause or clauses as are required by
HUD for compliance with its regulations issued
pursuant to the Housing and Urban
Development Act of 1968, as amended. The HA
shall cooperate with HUD in conducting
compliance reviews pursuant to said Act and
regulations.
1.22 EQUAL EMPLOYMENT OPPORTUNITY
The HA shall comply with Executive
Order 11246, and shall incorporate or cause
to be incorporated into all contracts for
construction work (which exceed $10,000)
or modifications thereof, as defined by the
regulations of the Secretary of Labor at 41
CFR part 60, which are to be performed
pursuant to this ACC, the Equal Opportunity
Clause contained in Section 202 of Executive
Order 11246.
The HA agrees that it will assist and
cooperate actively with HUD and the
Secretary of Labor in obtaining compliance
of contractors and subcontractors with the
rules, regulations and relevant orders of the
Secretary of Labor, that it will furnish HUD
and the Secretary of Labor such information
as they may require for the supervision of
such compliance and that it will otherwise
assist HUD in the discharge of HUD's
primary responsibility for securing
compliance.
(c)
The HA further agrees that it will refrain
from entering into any contract or contract
modifications subject to Executive Order
11246 with a contractor debarred from, or
1.23
ACC
(a)
who has not demonstrated eligibility for,
Government contracts and Federally assisted
construction contracts pursuant to the
Executive Order and will carry out such
sanctions and penalties for violations of the
Equal Oppommity Clause as may be
imposed upon contractors and subcontractors
by HUD or the Secretary of Labor pursuant
to Part II, Subpart D of the Executive Order.
The ACC is a contract between HUD and
the HA.
(b)This ACC supersedes any previous
Annual Contributions Contracts for the
Program. Matters relating to funding or
operation of the Program under a previous
Annual Contributions Contract are governed
by this ACC.
06/28/2001
ACC: Section 8 Moderate Rehabilitation SRO Program
SIGNATURES:
HOUSING AGENCY
NameofHousingAgeney City of Dubuque Housing Services Dept.
~gnature Date signed
By: Terrance M. Duggan
Printortype~enameandoffici~ tifleofperson whosigns
Mayor
UNITED STATES OF AMERICA
Re, rotary of 14mining and 1 lrhan D~v~lsp,letlt
Signature Date signed
By:
Bernice C. Unland. Director
Section 8 Financial Management Center
07/2712001