Communication with Iowa Congressional Delegation
~
~
CITY OF DUBUQUE, IOWA
MEMORANDUM
August 31, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Authorization for Communication with Iowa Congressional
Delegation
Housing Services Manager David Harris is recommending City sponsorship of
communications to the Iowa Congressional delegation in support of legislation to
assist Section 8 households at risk of loss of housing due to expiration of existing,
project-based HUD contracts.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
rvuJJ ~AJl
Mrchael C. Van Milligen
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
0 Cl
C)
(j'<- :r~:lJ. :::0
c:
C) '-n
t.A) , .J
- r: ; .'n
"':-' -c: --
~~'o. -- '''-
~-) ill
)> - ..., c.)
-..-,.", "::J
()"
CD <.r1
Q.
MCVM/dd
Attachment
"
~
~
CITY OF DUBUQUE, IOWA
MEMORANDUM
29 August 00
To: Mike Y Xi Milligen, City Manager
From: Da~ \lams, Housing Services Department
Re: Authorization for communication with Iowa Congressional delegation
Introduction
The purpose of this memorandum is to request the City Council's authorization for City
sponsorship of communications to the Iowa Congressional delegation, in support oflegislation to
assist Section 8 households at risk ofloss of housing due to expiration of existin~, project-based
HUD contracts.
Discussion
The Iowa Coalition for Housing and the Homeless (ICHH) has requested cities and housing
authorities throughout Iowa to co-sponsor the attached letters to the Iowa Congressional
delegation. Each supports pending legislation for appropriations for aid to households at risk of
loss of Section 8 rental assistance, for reason of owner opts-outs when existing HUD contracts
reach expiration dates.
In Dubuque, housing providers with "project-based" HUD Section 8 contracts include Alvemo
Apartments, Sheridan Village, St Mary's and Hillcrest Apartments. Each of these received long-
term Section 8 contracts when constructed, under a variety ofHUD programs. The expiration
dates for these contracts is nearing for these and for many other project-based housing
developments originally built in the 1960's and 1970's, throughout the country.
At expiration, owners have the option of renewing their HUD contracts or "opting out," and
renting their units at market rates. When the latter occurs, current subsidized tenants are faced
with significant rent increases. An example ofthis in Iowa, as mentioned in the ICHH letter,
occurred last year in Marshaltown. Elderly tenants there were forced to pay upwards of 40-50%
of their income in order to remain, once the new rents were put in place. This creates a severe
rent burden on lower-income households.
The proposed legislation will fund "enhanced" housing vouchers for residents and also provide
federal matching funds - to states, municipalities and organizations - wishing to purchase expiring
project-based Section 8 properties, to maintain their affordability.
The Iowa Coalition has prepared the attached letters in support of these legislative initiatives and
has requested cities and housing authorities to sign-on as sponsors.
Recommendation
It is recommended that the Council approve support ofthe Iowa Coalition initiative. Availability
ofHUD funds, for either the vouchers or matching funds for purchase of housing projects, does
not limit owner options. At contract expiration, those owners may choose to renew their HUD
contracts, raise rents to market rates or sell their housing units at market prices. Given the
potential hardship for Section 8 tenants, however, Congressional authorization of these requested
funding initiatives would provide significant relief and an opportunity to preserve rental housing at
affordable rates.
FRoM. :. IOWA COALITION HOUSING HOMELES FAX NO.
, ,
Aug. 25 2000 03:02PM P2
c
Iowa Coalition for Housing and the Homeless
713 E. Loculit Street · Des Moines, IA 50309 · 515-288-5022
.
August 25, 2000
Dear Colleagues,
Attached are two sign-on letters we'd like your organization to support. They are related
to two issues that v..;Jl soon be before Congress.
The first sign-on letter is born out of work lCIllI has been doing over the last nine
months to get enhanced vouchers for over 150 elderly Iowans who reside in housing in
which they are paying as much as 62% of their income for rent These folks are residing
in properties in which the owners opted--out of their project-based Section 8 contracts last
year. Once the owner opted-out, the residence were given regular Section 8 vouchers to
continue living there. However, the payment standard for the regular voucher was much
less than the true rent being charged by the owner so not only have the tenants been
paying the regular 30% of their income for rent, they've had to pay the difference
between the voucher payment standard and the true rent as well. I've attached a summary
of one of these properties, Prairie Village in Marshalltown to give you an idea of the
impact on the residence. Congressman Leach's staff has expressed interest in pursuing
this issue, however, we need to demonstrate the support that exists for such move.
The second issue involves support for S. 2773, the Affordable Housing for Seniors and
Family Act that will begin working its way through the Senate after the Labor Day
recess. One of the most important features oftbis legislation is the matching grant
provision in which the federal government will match funds used by states and localities
to assist organizations in buying expiring project-based Section 8 properties to maintain
their affordability. Several non-profits and for-profit OI"ganizarions in Iowa have
expressed interest in such purchases- MAHP in Cedar Rapids undertook such a purchase
a couple of years ago.
Responding to this action alert is simple. easy and quick Review the two attached sign-
on letters, than email me back if your orgaDization is interested in signing-on. I need
your response by the c;kOSE OF BUSINESS TUESDAY. AUGUST 29th_
Please lend your support. Thank you!
ve Director
Coalition for Housing and the Homeless
.......u
FROM IOWA COALITION HOUSING HOMELES FAX NO.
,. '
Aug. 25 2000 03:03PM P5
Statement of Support
Extending Section 8 Enhanced vouchers to Residents of
Pre..FY2000 Opt-Outs
August_, 2000
The undersigned organizations strongly support the extension of Section 8
enhanced vouchers to eligible residents of properties that opted out of the Section 8
program prior to October 1. )999.
Under this proposal, Congress would provide for a "voucher upgrade" by
amending Section 8(t)(2) of the United States Housing Act of 1937 to extend enhanced
voucher eligibility to residents who occupied an eligible property that opted out before
FY2000, are still Jiving in the opt-out property, and meet current income eligibility
requirements for enhanced vouchers. Currently. residents of properties that opted out
prior to FY2000 receive a regular voucher (generally capped at HUD's area..wide Fair
Market Rent)_ In many cases, these residents are rent burdened and remain at risk of
losing their housing.
This action is necessary to correct a legislative omission - while last year
Congress extended enhanced vouchers to opt-out residents, the amendment has been
interpreted such that only those residents in properties opting out in FY2000 (October 1,
1999 or later) may receive an enhanced voucher. Th~ the very residents whose plight
led Congress to extend enhanced vouchers to opt-out properties have been blocked from
receivjng that benefit. It is time for Congress to address this inequity.
We look forward to working with the Congress to further refine this me8SW'e as
needed so that :it can be enacted before the end of this legislative session.
<List of Organimtions>
].OT more in/ormation. contact Jim Cain at the Iowa CoaJitk>"for HOfISingand the Homele.u at
5/5-288-5022 or Todd Trehubenko ofRecapita/izationAdvisors at 617-338-9484.
FR~~ IOWR CORLITION HOUSING HOMELES FRX NO.
Rug. 25 2000 03:02PM P3
$.2833 SIGN ON LETTER
August _, 2000
(To all Senators except those already co-sponsoring S. 2733)
United States Senate
Washington, DC 20510
Dear Senator
The undersigned organizations are writing to express our support for the recently
introduced S. 2733, the Affordable Housing for Seniors and Families Act, and to urge
you to co--sponsor this important legislation. This bill includes important provisions
affecting elderly housing, including revision of the financing ofSec1ion 202 properties,.
and authorizes desperately needed funds to preserve federally assisted multifamily
housing. The bill also reauthorizes and modernjzes the Section 811 Supporthie Housing
for People with Disabilities program.
In particular, we strongly support the provisions of the legislation that would authorize
the Department of Housing and Urban DeveloJmCDt to establish a matchina grant
program (Section 401)~ which would distribute grants to states and localities that spend
their own funds to preserve HUD...assisted housing for low-income use. Preserving
existing affordable housing is far more cost-effective than new construction, and avoids
the risk of displacing famiHes, the elderly and people with disabilities from their homes
and communities.
The matching grant provisions of the bill will help safeguard the availability offederaUy
assisted housing affordable to families with low-incomes. By channeling funds to both
existing owners and new pW'Cbasers ofHUD-assisted housing to cover capital
eKpenditures or higher equity values, the matching grant program would enable
preservation of the affordable chaJacte.r of this vital housing stock. In addition, by
requiring that existing or new owners accept extended use restrictions in exchange for the
matching grant funds, Section 401 would ensure that these new investments achie\'e their
intended public pwpose.
We are also pleased that the Section 401 matching grant program would allow HOD to
provide matching funds at up to twice the level of state or local funding. sigJ'~1ing
Congress' commitment to work in partnership with state and local governments to protect
the supply of affordable housing. We also support those provisions that channel federal
matching funds through state and local housing agencies with a demODStIated
commitment to presetVing affordable housing. An increasing number of states and
localities are dedicating funds toward the preservation of fedenilly assisted housing. This
bill will help those state and local governments worldng for preservation.
While \Ve have a number of specific reoommendatioDS on how to strenathen the bill to
create a more effective program. including a preference or priority for resident-endorsed
non profits, we will submit those suggestions as the bill moves forward with hearings and
staff revisions_
r
'" .FRoT;1.:. IOWR CORLITION HOUSING HCMELES FRX NO.
Rug. 25 2000 03:03PM P4
Prairie Vjllage~ Marshalltown, Iowa*
Date of opt-out: 2/14/99
Number of residents still Bffeded: 33/56
Rent to owner: $450
VoueberPay~tStandard:$361
4 Th I
b T ts
Table 1. e InPad on t e eDan
Tenant Adj. , 30 % of Tenant
Rent Annual ! Annual payment %
Income Income
$250 $6443 $131 470.10
$272 $7317 $183 45%
$302 $8517 $213 43%
$356 $10683 $267 40%
$267 S7llS $178 45%
$274 $7405 $185 44%
$313 $89.57 $224 42%
$288 $7955 $199 43%
$185 $3854 596 58%
$315 $9019 $225 42%
$393 $12.149 $304 39%
$271 $7266 $182 45%
$309 $8794 $220 42%
$314 $8993 $225 42%
$249 $6412 $160 47%
$261 $6864 $172 46%
$265 57058 $176 45%
$312 $8920 $223 42%
$338 $9965 $249 41%
$212 $4927 $123 52% i
5268 57181 $180 45%
$220 $5249 $131 I 50%
I
$307 $8738 $218 T 42%
$206 $4680 $117 53%
$239 $5984 $150 , 48%
i
$237 55923 $148 I 48%
I
$233 $5744 $144 49%
$283 $7772 $194 44%
$239 $5996 $150 48%
5265 $8492 $212 370.4
$338 $9958 $249 41%
$173 $3362 $84 62%
$326 $9480 $237 41%
· Included as example of impact. Three other properties (located in Knoxville. Pella
and Boone) with sim11ar % of income being paid toward rent.