Renewal of Expiring Section 8 Contracts
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RESOLUTION NO 274-00
RESOLUTION AUTHORIZING EXECUTION OF A RENEWAL ANNUAL
CONTRIBUTIONS CONTRACT FOR SECTION 8 MODERATE
REHABILITATION PROGRAM CONTRACTS NUMBERS IA0870001/0014;
AND IA087MR0002/0022
Whereas, contracts for certain programs under Annual Contributions Contracts for
Section 8 Programs are periodically scheduled for expiration; and
Whereas, the US Department of Housing and Urban Development extends these funding
commitments through the offering of amended consolidated contracts, extensions or renewal
contracts; and
Whereas, the Department requires execution of this contract for the City's continued
administration of these funds for the above-referenced programs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Mayor of the City of Dubuque be and he is hereby authorized and
directed to execute a renewal Annual Contributions Contract, with the US Department of
Housing and Urban Development, for Project Numbers IA087MROOOllOOI4; and
IA087MROOO2/0022, under Master Annual ContnlJutions Contract No KC-9004-E, on behalf of
the City of Dubuque.
Section 2. This resolution sha1l take effect immediately.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
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CITY OF DUBUQUE, IOWA
MEMORANDUM
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Renewal of Expiring Section 8 Contracts
June 15, 2000
Housing Services Manager David Harris is recommending approval of a contract
offered by the U.s. Department of Housing and Urban Development (HUD) for the
renewal of expiring Section 8 Moderate Rehabilitation Program annual contributions
contracts.
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I concur with the recommendation and respectfully request Mayor and City Council
approval.
lul~ML
Michael C. Van Milligen
MCVM/dd
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
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CITY OF DUBUQUE, IOWA
MEMORANDUM
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14 June 00
To: Mike V~ ~en, City Manager
From: David 1ls, Housing Services Department
Re: Renewal of expiring Section 8 contracts
Introduction
The purpose of this memorandum is to request the City Council's approval of a contract offered
by the US Department of Housing and Urban Development (HUD) for renewal of expiring
Section 8 Moderate Rehabilitation Program annual contnoutions contracts.
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Discussion
The Housing Services Department's 1981 and 1982 contracts withHUD for "Moderate Rehab"
(project-based) Section 8 Program units began expiring in 1996. Most of these were renewed as
housing certificates and vouchers - tenant-based housing assistance, with one-year renewal
contracts.
However, owners of projects with four or more units were offered the opportunity to renew their
project-based contracts, with HUD, again, for one-year intervals. Two owners of qualilYing
projects have elected to continue to annually renew their Moderate Rehab Program contracts,
totaling ten housing units. These were last renewed in May 99 and again have expired. In accord
with HUD regulations, renewals must be approved by action of the City Council for Dubuque's
Section 8 annual contnoutions contracts.
Action Step
The action requested ofthe Council is to authorize the Mayor's execution of the attached
resolution and HUD annual contnoutions contract, renewing Section 8 assistance to owners of
ten units under Moderate Rehab Program funding increment numbers IA087MROOO 1/00 14 and
IA087MR0002/0022.
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Annual Contributions Contract
Moderate Rehabilitation Program
ACC Part 1
U.S. Department of Houslno
and Urban Development
Office of Public and Indian Housing
Section 8
...
Ie of Sections page
The Program ............................... 1
Authorization of Actions by HA ................. 1
Funding and Term ........................... 1
Annual Contributions ......................... ,
HUD Payments tOf Moderate Rehabilitation Program. .. 1
Fiscal Year ................................ 2
Periodic Adjustment of Contract Rents ............ 2
1.2
1.3
1.4
1.5
1.6
1.7
p
1.8 Expeditious Carrying Out of Project .... _ . . . _
1 .9 Assistance to 8igible Families When
Contracts are Terminated ..................
1.10 Responsibility f()( Administration of Contract ....
1.11 HUDReQuirements............... ........
1.12 Exclusion of ll1ird Party Rights. . . . . . . . . . . . . . .
1.13 ACC..................................
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1.1 The Program
(al Projects in the Program
1111ne HA's Moderate Rehabilitation Program under
this ACe includes all projects listed in the funding
exhibit attached to this ACC Part I.
(2) The HA. to the maximum extent feasible, shall enter
into Agreements and Contracts in accOfdance with
the numbers and sizes of units in each praiect
specified in the funding exhibit. No substantial devi.
a tion as defined by HUD from the bedroom distribu-
tion or number of units in each project is allowed
without prior HUO approval. The HA shall nOt enter
into any Agreements Of Contracts 0( take any other
action which will result in a claim fO( an Annual
Contribution in respect to any project in excess of
the maximum amount authorized for that proiect.
Ibl 1ne term .HA. means the Housing Agency which has
executed this ACe.
lc) 1ne term .HUO. means the United States Department
of Housing and Urban Development.
(dl 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 authorized to (al
enter into Agreements, (b) enter into Contracts, (c) mak.e
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 HUO shall
assume any obligations beyond those provided in the
prescribed forms of Agreement and Contract.
1.3 Funding and Term
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(al The projects (funding increments) in the HA Moderate
Rehabilitation Program are listed in the funding exhibit
to this ACC. The funding exhibit states the amount a
term of funding for each project.
(bl The amount of contract and budget authority fo< ea.
project in the HA Moderate Rehabilitation Program
stated in the funding exhibit. .Contract authority. is tt
maximum annual payment by HUD to the HA tOf
praiect. .Budget authority. is the maximum amount
funds available tOf payment to the HA over the term
the project. Budget authority is authorized and approp,
ated by the Congress.
(cl The funding exhibit states the first date and fast date I
the ACC term fo< each project.
1.4 Annual Contributions
(a) HUD shall not make any Annual Contributions or any oth,
payment with respect to any Fiscal Year fOf a project i
excess of the contract authority for the proiect specifie
in the funding exhibit. However, this amount shall b
reduced commensurately with any reduction in th
number of Contract Units or changes in unit sizes c
pursuant to any other provision of this ACC or th
Contracts.
(bl The 10lal amount of payments for a project over th
project term must not exceed budget authOfity tOf th,
praiect specified in the funding exhibit.
1.5 HUD Payments for Moderate Rehabilitation
Program
(al HUD will mak.e payments to the HA in accordance witt
HUD regulations and requirements.
(b) For each HA Fiscal Year, HUD will pay the HA the
amount approved by HUO to cover the following lsubjecl
to reduction by the amount of any Project Receipts other
than Annual Contributions {such as interest income:
which Receipts shall be available for Project
Expendituresl:
{1} The amount of housing assistance payments payabl
during each Fiscal Year by the HA pursuant to
Pace 1 01 J
form tlUO.52520.MR (11/931
(c) A Proiect Account shall be estabfished and maintained for
each Pf'oiect under this ACC. in an amount as determined
by HUD, out of amounts by which the contract autho<ity
fO{ the ",eject exceeds amOU'lts paid under the ACC fO{
the ",eject fO{ any fiscal year, This account shall be
established and maintained by HUD as a specifically
identified and segregated accOlKlt. To the extent funds
are availa~e in this account, the maximum amount . ..
payable by HUD fO{ any Fiscal Year may be increased by t. t D Responsibility
an amount, if any. as may be required fOf increases
reflected in the estimate of required Annual Contribution
applicable to the Fiscal Year as apploved by HUD.
121
Contracts with owners. (Such payments may not be
made fOf more than 15 years for any unit.)
The allowance. in the amount apptOved by HUD. for
preliminary costs of administration.
The allowance. in the amount approved by HUD. for
the regu<<ar costs of administration including costs of
HUD required audits of 0w'ners and the HA.
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131
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1.11
Idl HUD will make periodic payments on account of each
",eject upon requisition by the HA in the fo<m ",escribed
by HUD. Each requisition shall include certification by
the HA that housing assistance payments have been or
will be made only:
(11 In accO{dance with the ",ovisions of the Contract,
and
(2) With respect to units which the HA has inspected 0{
caused to be inspected and determined to be in
dccent. safe and sanitary condition, within one year
prior to the mak..ing of housing assistance payments.
(e) Following the end of each Fiscal Year. any amount by
which the total payments made during that Fiscal Year
cxcccd thc Annwl Contribution payable in accQ(dance
with this scction will be subtracted from the next
payment made by HUD to the HA, unless other dispo-
sition is approved or rcquired by HUD.
.6 Fiscal Year
10c funding cxhibit statcs thc l.Jst month and day of thc HA
risc.11 yC.1r,
7 Periodic Adjustment of Contract Rents
n,C Contract will provide for periodic adjustments in thc
Contract Rents. in accordance with applicable HUD regu.
btions. up 10 the n\,Jximum amount aulhorizcd for housing
,lssist,l11ce p.1Vnwnts in the HUD approvcd estima1c submil1cd
hy the teA.
I [I Expeditious C;Hryin!) Out of Project
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1 Ill: IIA Sh,ll! rlf\\~:(~Cti expeditiously to illlplC:fllcnt
Ill,un (:tlIlSIStl'll! \Vllh the U:h.1bilil,lllon .lnd It:,lsinO
the Pro.
schedule
to( each project. If the HA tails to proceed expeditit
HUO may terminate Of reduce its obligation under this J.
with respect to the project.
1.9
Assistance to Eligible Families When Contract,
are Terminated
When the Contract (Of any unit(s) is terminated for any
reason. leaving budget authority available under this ACC.
the assisted family{ies) if eligible for continued assistance. or
other eligibte family(ies) if the unit(s) is vacant. may
continue to receive housing assistance for the remainder of
the ACC term in accordance w;th HUD regulations by the
use of the Moderate Rehabilitation funding for Rental
Certificate assistance.
for Administration of Contract
The HA is responsible for administration
subject to review and audit by HUD.
of the Contracts,
HUD Requirements
(a) The HA must comply. and must require owners to
complYI with the requirements of the U.S. Housing Act of
1937 and all HUD regulations and other requirements,
including any amendments ()( changes in the law Of HUD
requirements.
Ibl The HA must comply with its HUD.approved admin.
istrative plan. equal opportunity housing plan and HUO
.approved program funding applications.
(c) The HA must use the program forms required by HL.
1.12 Exclusion of Third Party Rights
(a) A family that is eligibfe for housing assistance under this
ACC is not a party to 0{ third party beneficiary of the
ACC.
(bl Nothing in the ACC shall be construed as creating any
right of any third party to enforce any provision of this
consolidated ACC, 0{ to assert any claim against HUD Q(
the HA.
1.13 ACC
(a) ACC is a contract between HUD and the HA.
(bl Thc ACC consists of this Part I, including the funding
exhibit, and Part II (form HUD.52520-C ISupplll017911.
These documents are the whole ACC.
(cl This ACC supcrsedes any prcvious annual contributions
contract for a program. Matters relating to funding or
operation of the program undcr a prc....ious I
contributions contract are go....erned by this ACe.
rnoolot.J
form tiUO.52520-MR (11/931
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United States of America
Housing Agency
S4:ct'etary of Housing and Urban Development
S';ll'\O(ure of AuthotlJ:od R.pc'.s.nat......:
x
Nnme & OfrllC&e1 rrt"': (pf'int 0( typel
Bernice C. Unlarrl, Director
~ B Financial Manage:rent Center
N.ome of Aooncy: (prine 0( typoJ
Ci ty of DubuQue
Si\:ln3tUfe of Authorized Represenative:
Poao ) of J
Dale signed.
Dale signed:
'o<m IiUO.SZSZO.MR 15:931