Section 8 Housin Contract RenewCITY OF DUBUQUE, IOWA
MEMORANDUM
March 13, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Renewal of Section 8 Program Contracts
Housing Services Manager David Harris is requesting authorization of a renewal of the HUD
Moderate Rehabilitation Program Annual Contributions Contract for expiring Section 8
Moderate Rehabilitation Program units.
I concur with the recommendation and respectfully request Mayor and City Council approval.
MCVMJjh
Attackment
cc: Barry Lindahl, Corporation Counsel
David Harris, Housing Services Department
¥1 'enbnqnG
EI iAF:iOBU
CITY OF DUBUQUE, IOWA
MEMORANDUM
14 March 01
To: Mike _~a~ Milligen, City Manager
From: David~trris', Housing Services Department
Re: Renewal of Section 8 Program contracts
Introduction
The purpose of this memorandum is to request the City Cotmcil's authorization of a renewal
annual contributions contract with the US Department of Housing and Urban Development
(HUD) for expiring Section 8 Moderate Rehabilitation Program units.
l)iseussion
We received HUD funding awards for Moderate Rehabilitation Program (project-based) Section 8
units, in 1981 and 1982, for programs IA05-KO87-001 and IA05-KO87-002. These were 15-
year eontracts, for a total of 117 units. These unit contracts began expiring in 1996; most have
been converted to vouchers (tenant-based assistance) since that time.
However, the HUD regulations do allow an owner to annually renew project-based contracts, for
buildings with four or more units. Owners of one project each, under contracts K001 and K002,
have annually elected to renew, for six and four units, respectively. The HUD annual contribution
contracts have again come due and HUD has offered us the opporttmity to renew them again this
year.
Action Step
The action requested of the Council is to authorize the Mayor's execution of the attached
Moderate Rehab'ditation Program Annual Contn'butions Contract, for programs IA05-KO87-001
and IA05-KO87-002, for another 12-month renewal.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
SECTION 8
Moderate Rehabilitation Program
Annual Contributions Contract
TABLE OF SECTIONS
1.1 THE PROGRAM .................................................................................................................................... 1
1.2 AUTHORIZATION OF ACTIONS BY HA .......................................................................................... I
1.3 FUNDING AND TERM ......................................................................................................................... 1
1.4 ANNUAL CONTRIBUTIONS .......................................................................................................... 2
1.5 HUD PAYMENTS FOR MODERATE REHABILITATION PROGRAM .............................................. 2
1.6 FISCAL YEAR ...................................................................................................................................... 3
1.7 PERIODIC ADJUSTMENT OF CONTRACT RENTS ........................................................................... 3
1.8 EXPEDiTIOUS CARRYING OUT OF PROJECT ............................................................................... 3
1.9 ASSISTANCE TO ELIGIBLE FAMILIES WHEN CONTRACTS ARE TERMINATED ....................... 3
1.10 RESPONSIBILITY FOR ADMINISTRATION OF CONTRACT ........................................................... 4
I. 11 HUD REQUIREMENTS .................................................................................................................... 4
1.12 EXCLUSION OF TI-IIRD PARTY RIGHTS ............................................................................. 4
I 13 ACC
Annual Contributions Contract
Moderate Rehabilitation Program
U.S. Department of Itousing
and Urban Development
Office of Public atzd
Indian flousing
ACC PART I
1.I THE PROGRAM
(a) PROJECTS IN PROGRAM
(1)
The HA's Moderate Rehabilitation
Program under this ACC includes
all projects listed in the funding
exhibit attached to this ACC Pan I.
(2)
The HA, to the maximum extent
feasible, shall enter into Agree-
ments and Contracts in accordance
with the numbers and sizes of units
in each project specified in the
funding exhibit. No substantial
deviation as defined by HUD from
the bedroom distribution or 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
f~r that project.
(b) The term "HA" means the Housing Agency
which has executed this ACC
(c)
The term "HUD" means the United States
Department of Housing and Urban
Development.
(d)
The term "proJect" means each funding
increment in the HA Moderate
Rehabilitation 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 Families and (d) take all other
necessary actions, all in accordance with the
application, forms, conditions and requirements
prescribed or approved by HUD. However,
neither the HA nor HUD shall assume any
obligations beyond those provided in the pre-
scribed forms of Agreement and Contract.
1.3 FUNDING AND TERM
(a)
The projects (funding increments) ~n the
HA Moderate Rehabilitation Program are
listed in the funding exhibit to this ACC.
The l~nding exhibit states the amount ank:l
term of funding for each project.
The amount of contract and budget
authority for each project ~n the tlA
Moderate Rehabilitation Program *s stated
in the funding exhibit. "Contract
authority" is the maximum annual payment
by HUD to the HA for a project. "Budget
authority" ~s the maximum amount of
ACC Part I: Secnon 8 Moderate Rehabilitation Program
funds available tbr payment to the HA over
the term of the project. Budget authomy ~s
authorized and appropriated by the
Congress.
(c) The funding exhibit states the first date and
last date of the ACC term [Bt each project.
(d)
By giving written not.ce to the HA. HUD
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 l'E.r each funding
increment under the ACC. The HUD
notice of a revised funding exhibit
constitutes an amendment of the ACC.
1.4 ANNUAL CONTRIBUTIONS
1.5
(a)
HUD shall not make any Annual
Contributions or any other payment with
respect to any FiscaI 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 changes in
unit sizes or pursuant to any other
provision of this ACC or the Contracts.
(b)
The total amount of payments for a project
over the project term must not exceed
budget authority tbr the project specified in
the Funding Exhibit
}IUD PAYMENTS FOR MODERATE
REHABILITATION PROC RA, M
(a)
(c)
HUD will make payments to the HA m
accordance with HUD regulations and
reqmrements.
For each HA Fiscal Year. HUD will pay
the [IA the amount approved by HUD to
cover the l'Bllowing (subject to reduction by
the amount of any Project Receipts other
than Annual Contributions (such as
interest 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 more
than 15 years for any unit.)
(2)
The allowance, in the amount
approved by HUD. for the costs of
administration, including costs of
HUD required audits of Owners and
the HA.
(1)
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
i:unds are available in this accounL
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 tn the estimate of required
Annual Contribution applicable to
lbrm HUD 52520 Mod Rehab (10/99)
Page 2 of 5 pago,
ACC Parl 1: Section 8 Moderate Rehabilitation Program
Id)
the Fiscal Year as approved by
HUD.
HUD will make periodic payments on
account of each project upon reqmsmon by
the HA in the form prescribed by HUD.
Each requisition shall include certification
by the HA that housing assistance
payments have been or wdl be made only:
(1)
(2)
In accordance with the provisions of
the Contract. and
(e)
With respect to umts which the HA
has inspected or caused to be
inspected and determined to be in
decent, safe and sanitary condition,
within one year prior to the making
of housing assistance payments.
Following the end of each Fiscal Year, any
amount by which the Iotal payments made
during that Fiscal Year exceed the Annual
Contribution payable in accordance with
this section will be subtracted /'rom the
next payment made by HUD to the HA,
unless other disposition is approved or
required by HUD.
1.6 FISCAL YEAR
1.7
The funding exhibit states the last month and day
of the HA Fiscal year.
PERIODIC ADJUSTMENT OF CONTRACT
RENTS
The Contract will provide for periodic
adjustments m the Contract Rents. m accordance
with applicable HUD regulamms, up to the
maximum amount authorized fi)r housing
assistance payments in thc HIID approved
esmnate submitted by the HA
1.8 ASSISTANCE TO ELIGIBLE FAMILIES
WIIEN CONTRACTS ARE TERMINATED
1.9
When the Contract lbr any una(s) is terminated
~br any reason, leaving budget authority available
under this ACC, the assisted family(les) if eligible
for continued assistance, or other eligible
t~nily(ies) if the unit(s) is vacant, may continue to
receive housing assistance flat the remainder or'
the ACC term in accordance with HUD regu-
lations by the use of the Moderate Rehabilitation
funding for Rental Voucher assistance.
RESPONSIBILITY FOR ADMINISTRATION
OF CONTRACT
The HA is responsible for administration of the
Contracts, subject to review and audit by HUD.
1.I0 HUD REQUIREMENTS
Ia)
The HA must comply, and must require
owners to comply, with the requirements of
the U.S. Housing Act of 1937 and all HUD
regulations and other requirements.
including any amendments or changes in
the law or HUD requirements
(b)
The HA must comply with its HUD-
approved administrative plan, equal
opportunity housing plan and HUD-
approved program funding applications.
(c)
The HA must use the program tBrms
required by HUD.
1.11 EXCLUSION OF THIRD PARTY RIGIITS
A family that is eligible h)r huustng assis-
tance under this ACC ~s not a party 1o or
~hird party beneficiary o[ the ACC
Nothing in the ACC shall be construed as
creating any right of any third party to
form HUD 52520 Mod Rehab (t0/99)
Page 3 of 5 pagc~
ACC Part t: Section 8 Moderate Rehabilitation Program
1.12
ACC
(a)
(b)
(c)
ent~,rce any provision of this consolidated
ACC. or to assert any claim against HUD
or the HA
The ACC is a contract between HUD and
the HA.
The ACC consists of this Part I. including
the funding exhibit, and Part 11 (Form
HUD 52520 C (Supp)(10/79)). These
documents are the whole ACC.
This ACC supersedes any previous annual
contributions contract for a program.
Matters relating to funding or operation of
the program under a previous annual
contributions contract are governed by this
ACC.
lbrm [IUD 52520 Mod Rehab (10199)
Page 4 ol 5 pages
ACC Part I: Section 8 Moderate Rehabilitation Program
SIGNATURES:
HOUSING AGENCY
Name of Housing Agenc. ay City of Dubuque Housing Services Dept.
~~'~ Date signed
:
By Terrance M Duggan, Mayor
Print or type the name and official title of person who signs
UNITED STATES OF AMERICA
Secretary of Housing and Urban Development
Signature Date signed
By. Bernice C. Unland, Director Section 8 F~2
Print or type the name and official title of person who signs
form HUD 52520 Mod Rehab (10199)
Page 5 of 5 pagc~