Loading...
HomeMy WebLinkAboutAgenda - 11-16-2004-5lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 16, 2004 Action Agen,~da' Item No. SUBJECT: Section 8 Housing Program Administrative Plan DEPARTMENT: Housing/Comm. Development ATTACHMENT(S): Resolution Program Policy PUBLIC HEARING: (Y/N) No INFORMATION CONTACT: Tara L. Fikes, ext. 2490 Durham 688-7331 Mebane 336-227-2031 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 PURPOSE: To adopt a resolution approving a revision to the Administrative Plan for the Orange County Section 8 Housing Program to include the Project-Based Voucher Program Policy. BACKGROUND: Every housing agency that administers the Section 8 Housing Voucher Program must adopt a written Administrative Plan that establishes local policies far administration of the program in accordance with federal Housing & Urban Development (HUD) requirements, Further, HUD regulations require that the agency's governing board approve the plan by resolution, The Board adopted the current Administrative Plan on September 15, 1998. Due to the addition of a Section 8 Project-Based Voucher Program, the County's Administrative Plan must be amended by resolution to incorporate the new program, The Board approved a policy for this program in December 2002. However, staff did not recommend the necessary Administrative Plan amendment at that time, Thus, the attached resolution has been prepared to incorporate the approved policy into Administrative Plan, The County's Project-Based Voucher Program is being utilized for the first time at the Club Nova Apartments in Carrboro. Under this re-construction project, the number of apartment units went from 8 to 24. Throughout the summer, County staff met with local advocates for the disabled population as well as the developers of the Club Nova Apartments and property management representatives to plan for the availability of these units, These apartments were completed on October 6, 2004 and were 100% occupied by November 15t By way of information, of the 24 Club Nova Apartment tenants: Three (3) are Section 8 recipients who had previously lived there before it was redone as a project based development; Two (2) are Section 8 recipients who already held traditional vouchers but chose to convert them to project based; and the remaining nineteen (19) are recipients who came from the County's Section 8 waiting list. FINANCIAL IMPACT: There is no financial impact. RECOMMENDATION(S): The Manager recommends adopting a resolution approving a revision to the Administrative Plan for the Orange County Section 8 Housing Program to include the Project Based Voucher Program Policy. RESOLUTION WHEREAS, the Orange County Housing Choice Voucher Program is administered by the Orange County Housing and Community Development Department; and WHEREAS, HUD requires all housing agencies that administer that the Section 8 Housing Voucher Program to adopt a written Administrative Plan that establishes local policies for administration of the prograni in accordance with HUD requirements; and WHEREAS, the Board of County Commissioners approved a Section 8 Project Based Voucher Program Policy on December 2002; and WHEREAS, the Policy must he incorporated into the local Administrative Plan; NOW, THEREFORE, BE IT RESOLVED, that the Orange County Board of Commissioners approves the amendment of the Administrative Plan to incorporate the Project Based Voucher Program Policy, This the 16th day of November 2004. PROJECT-BASED HOUSING CHOICE VOUCHER PROGRAM A. Goals On December 2, 2002, the Orange County Board of Commissioners approved a Section 8 Project Based Voucher Program in an effort to encourage production of new affordable rental housing in Orange County by private, for-profit and non-profit organizations. B. Project Selection Criteria The Project Based Section 8 Assistance proposals must be targeted for citizens with disabilities at incomes at or below 50 percent of the Area Median Income. The proposals must include provisions for supportive services for the disabled citizens that will help them to remain in independent living. All units must meet the HUD Housing Quality Standards and IIUD Site and Neighborhood Standards. The program will provide Project Based Vouchers (PBV) for up to 50 dwelling units. C. Elieible Owners of Project-Based Housing The Orange County Housing and Community Development Depaztment (OCHCD) will project-base Housing Choice Voucher Program assistance in projects owned by: 1.Non-profit housing providers; and 2. For-profit housing providers; D. Project Selection OCHCD will make Housing Choice Voucher Program funding available to non-profit and for-profit entities tluough a competitive process, such as a Request for Proposals (RFP). Request for Proposals (RFP Process From time to time OCHCD may issue a formal Request For Proposals (RFP) inviting proposals for projects that seek conunitments of project-based vouchers that meet the goals of OCHCD's project-basing policy. The Request for Proposals advertisement will run once a week for tluuee consecutive weeks (a minimum of twenty-one (21) days) and will describe the application process azid specify the number of units OCHCD will be able to assist. Only applications submitted in response to this advertisement will be considered.. All advertising will be consistent with the OCHCD's Fair Housing Plan as approved by the U. S Department of Housing and Urban Development (HUD). Advertisements will be in the format attached acrd will: 1) Rwr in the Chapel Hill Herald and the News of Orange County, which are newspapers of general circulation in Orange County. 2) Run once a week for three consecutive weeks, specify the number of PBV units, and first published following HUD's approval to implement a project based program; and 3) Have the deadline for acceptance of owner applications established as thirty days after the date the advertisement is last published,. E. Maximum Gross Rents/Payment Standards OCHCD shall use the same payment standard schedule for an assisted family in a Project-Based Program as it uses for tenant-based assistance. Utility Allowances In general, OCHCD shall use the same utility allowance in the Project-Based Program as it uses for tenant-based assistance. An owner with energy efficient units may submit a written request to the Director that aproject-specific utility allowance be substituted for the tenant-based programs' utility allowance schedule, based on a written estimate from the local electric utility company of the likely consumption of utilities for that building based on specific energy efficient features of the building. Once a utility estimate is used, it must be updated at least annually, OCHCD will not approve a rent increase for' a property without a new written estimate of likely utility consumption from the local public utility.. F. Contract Term The contract term shall be negotiated for each project based on the prgject's needs, within the general framework after an initial 10 years. All contracts are subject to availability of adequate fiords. G. Annual Rent Increases Non-prof t and for-profit owners of units assisted by OCHCD Project-Based Section 8 assistance may request annual rent adjustments. All requests shall always be subject to the rent reasonableness test.. The owner shall submit a specific request in writing for a rent increase.. The effective date of the rent increase shall he the later of the one year anniversary of the last rent increase, or at least .30 days from the date OCHCD receives the written request. H. Vacancy Loss and Damage Claims No Damage Claims OCHCD will not make payments to the owner for any damages to the unit, or for any other amounts owed by a family under the family's lease. Vacancy Payment If an assisted family vacates the contract unit leased by family, upon written request from the owner, OCHCD agrees to continue Housing Assistance Payments to the owner from the date the tenant moves out to the end of that month, plus .30 days, i£ I. The owner gives OCHCD prompt notice of the vacancy; 2, The vacancy is not the fault of the owner; and 3. The owner has taken every reasonable action to minimize the likelihood and length of the vacancy. Deadline for Requesting Reimbursement for Vacancy To receive the vacancy payment described above, the owner must submit a written request to OCHCD no later than one calendar quarter following the calendar quarter in which the vacancy occurred. I. Exit Vouchers OCHCD shall not provide vouchers to families who move out of project-based units. Exception: Original residents of buildings when the owner executes a contract for project based assistance.. A farnily assisted with atenant-based voucher living in a building identified for project-based assistance must surrender their tenant-based voucher when the owner executes a contract to project-base a voucher for their unit. The family will be offered atenant-based voucher at the point it moves out of the project-based building provided it is still eligible for the Housing Choice Voucher Program (local preferences do not apply), This provision applies only to original residents of a building who are assisted by a voucher at the time a contract is first executed for project-based assistance including their unit. Families assisted by vouchers who choose to move into aproject-based property must surrender their tenant-based voucher at the time they move in, and the voucher will not be restored to them when they move out unless there is a voucher available to the family. J. Tenant Selection: Waitine Lists One waiting list will be maintained for both the Tenant Based and Voucher Based Voucher Program.. K. Lease Terms for Residents of Proiect-Based Properties Owners may establish lease teens of least one year for the residents of project-based units, consistent with the general practice of the owner's housing program and the particular goals of the project-based property.. L. Minimum Occupancy Requirements for Proiect-Based Properties OCHCD shall make payments to owners based on assumed minimum occupancy for project-based units, using the Subsidy Standards outlined in Chapter 5 of this Administrative Plan. If occupancy of aproject-based unit drops below the minimum occupancy standard (e.g., aone-person family in atwo-bedroom unit) for longer than 90 days, OCHCD may reduce the Housing Assistance Payment for the unit to the amount appropriate for the size of the assisted family occupying the unit. M. Tenant Selection: Admissions Criteria General EliQibilit~quirements Applicants for Section 8 project-based assistance must meet the same eligibility requirements as applicants for Section 8 tenant-based assistance outlined in Chapter 2 of this Administrative Plan, unless otherwise stated below, Eviction Historv OCHCD shall not deny admission to project-based units to applicants based on previous evictions, provided the household meets the requirements for eligibility for federal assistance (24 CFR 982..553, further described in Chapter 2, Section F, "HUD-mandated denials"). Criminal Historv Owners shall screen and select tenants using their own standards for criminal history. OCHCD shall review applicant criminal history to insure that applicants are eligible for subsidy under federal regulations, by applying the HUD-mandated required denials for criminal history outlined in Chapter 2, Section F. of this Administrative Plan. Consistent with the provisions in the regulations for "evidence of rehabilitation," and in order to accommodate individuals with disabilities, OCHCD may give the property owner flexibility to accept residents for subsidized units who have a disability and a related criminal history that could otherwise disqualify them for assistance. Owners must submit their tenant screening and supportive services plan to OCHCD for approval. N. Housing Quality Standards; Inspections All ]rousing units - as well as the buildings in which they are located -that receive project-based operating subsidy must meet HUD's Housing Quality Standards (HQS). OCHCD shall conduct an initial inspection for HQS and rent reasonableness prior to the commencement of subsidy For a newly contracted project and (for substituted units in an existing contract) a newly contracted unit within an operating property. OCHCD shall conduct annual inspections ofall buildings at least once every 12 months, prior to the one year anniversary of the previous aimual inspection. OCHCD requires that owners certify that a unit meets HQS standards as of the date of initial occupancy by a new tenant, but shall not conduct an inspection upon unit hirnover. All other procedures and requirements relating to HQS described in Chapter 10 of this Administrative Plan applies to the project-based program. O. Rent Calculations for Tenants Minimum Rent The Minimum Rent policy described in Chapter 6 of this Plan shall apply to residents of units assisted by project-based Section 8 vouchers, with the following exceptions: P. Unit Transfers Under Section 8 regulations a transfer from one unit to another is subject to all the requirements and processes of an initial lease-up. The tenant must have a new lease for a new unit. Owners may allow residents of project-based units to transfer from one unit to another, subject to OCHCD re-determination of eligibility and tenant rent. (If the transfer is to another unit in the same building, redetermination of'eligibility may not be required. ) Q. Release of Health-Related Information OCHCD shall not release any health-related information for an assisted resident to a property owner without a specific release from the resident. R. Contract Language Talces Precedence In the event of a discrepancy between the language of this Administrative Plan and the language of a HAP Contract in effect for an assisted property, the HAP Contract language will take precedence. S. Replacement of HUD Regulations and Previous Policy Statements This policy as outlined in this Plan replaces and supercedes in part the HUD regulations and procedures found in 24 CFR 983 regarding the project-basing of Section 8 Certificates and authorizes the project-basing of Housing Choice Voucher assistance.