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Housing Vouchers Section 8 ProgCITY OF DUBUQUE, IOWA MEMORANDUM January 8, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Application for Section 8 Program Housing Vouchers Housing Services Manager David Harris requests approval of an application to the U.S. Department of Housing and Urban Development for 40 Section 8 Housing Program Vouchers. I concur with the recommendation and respectfully request Mayor and City Council approval. ~. 'Can ~illigen~ ' MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager David Harris, Housing Services Manager CITY OF DUBUQUE, IOWA MEMORANDUM DATE: 8 January 2001 TO: FROM: Michael Van Milligen, City Manager David Harris, Housing Services Depa~hnent Application for Section 8 Program Housing Vouchers INTRODUCTION The purpose o this memorandum ~s to request City Council approval of an application to the U.S. Department of Housing and Urban Development (HUD) for 40 Section 8 Program Housing Vouchers. DISCUSSION The City's Housing Services Department has administered HUD's Section 8 Rental Housing Assistance Program since 1976. Under the Section 8 Program, income eligible families are assisted in the payment of their housing costs. Generally, program participants pay thirty percent of their adjusted income to the owner of their apartment; the voucher authorizes the municipal housing agency to subsidize the difference between this amount and the total rental costs, up to a maximum standard. Currently the Housing Services Depm hnent administers annual contributions contracts from HUD for a variety of Section 8 Housing Assistance Programs, including vouchers. A total of 1045 housing Certificates, Vouchers, and Mod Rehab units are under contract. Approximately $2.9 million in housing assistance payments was paid by the City during Fiscal Year 2000. Affordable housing for lower-income, and particularly for single-parent households, remains difficult to obtain in Dubuque. As the City's fair market rents have been reduced by HUD, many landlords 1-ave found the Section 8 Program less attractive. This in turn makes it all the more difficult for lower-income families to find decent housing they can afford. BUDGET IMPACT The application is for 40 Section 8 vouchers for quaffing families. Total five-year contributions authority for these vouchers will be approximately $950 000. RECOMMENI)ATION It is recommended that the City Council approve the attached resolution authorizing the Mayor to execute an application to the U.S. Departmant of Housing and Urban Development, for forty Section 8 Housing Program Vouchers. ACTION STEP The requested action is for the City Council to approve the attached resolution, authorizing the Mayor to execute an application for additional housing vouchers; and that the Housing Commission be directed to hold the required Public Hearing. DHJds Attach. RESOLUTION NO. 10-01 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN APPLICATION TO PARTICIPATE IN THE SECTION 8 HOUSING VOUCHER PROGRAM Whereas, the City of Dubuque recognizes the continuing unmet need for provision of assisted housing to the City's qualifying lower-income families; and Whereas, the City has continuously provided housing assistance to Section 8 Housing Program tenants, since 1976; and Whereas, the U.S. Department of Housing and Urban Development has made funding available to encourage municipalities to implement innovative programs promoting the economic independence of lower-income families, through cooperating efforts of the public and private sectors; and Whereas, and in accordance with Section 403A.5 of the Iowa Code which states "A munidpality or a 'Municipal Housing Agency' may not proceed with a housing project until a study or a report and recommendation on housing available within the community is made public by the municipality or agency and is included in its recommendation for a housing project. Recommendations must receive majority approval from the local governing body before proceeding on the housing project." AND IN ACCORDANCE WITH Section 213(c) of the Housing and Community Development Act of 1974, which states in part that it must be determined whether or not there is a need for such housing assistance, taking into consideration any applicable State or areawide housing assistance plan as well as generally available data with respect to population, poverty, housing over-crowding, housing vacancies and substandard housing. An application may be approved only if this determination is in the affirmative; and Whereas, this application is consistent with the current Comprehensive Housing Affordability Strategy and Consolidated Plan for the City of Dubuque. NOW THEREFORE, BE tT RESOLVED BY THE CITY COUNCIL OF DUBUQUE, IOWA: Section 1. The City of Dubuque has determined there is a need for additional housing assistance and is knowledgeable of the status of available housing within the City as required by Iowa Code and that majority approval of the proposed housing activity within the City's jurisdiction is hereby granted. Section 2. This resolution is intended to serve as the City of Dubuque's final notice to the U.S. Department of Housing and Urban Development of such approval and that no additional comment will be made by the City of Dubuque on this matter. Section 3. The Mayor is authorized and directed to execute an application to the U.S. Department of Housing and Urban Development for pa~cipation in the Section 8 Housing Voucher Program: Section 4. The City of Dubuque Housing Commission is hereby directed to conduct the necessary public hearing regarding this application in accordance with requirements of Chapter 403.A.28 of the Code of Iowa. to review and/or approve or suggest modifications of the plans for program design and administration of this proposed program. Section 5. The City Manager is hereby authorized and directed to forward said application and resulting standard executed contract to the respective agencies in a timely fashion and as required by the U.S. Department of Housing and Urban Development. Passed, approved and adopted this ! 5t ~lay of January, 2001. /s/ Terrance M. Duggan, Mayor Attest /s/ Jeanne F. Schneider, City Clerk