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HomeMy WebLinkAboutR-88-0840J-88-874 9/19/88 SN—H40 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT AN ANNUAL CONTRIBUTIONS CONTRACT IN THE AMOUNT OF $567,000 UNDER THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 8 MODERATE REHABILITATION HOUSING PROGRAM, AND FURTHER AUTHORIZING THE CITY MANAGER TO ENTER INTO AND EXECUTE ALL NECESSARY DOCUMENTS IN ORDER TO IMPLEMENT THE PROGRAM. WHEREAS, Section 8 of the United Stated Housing Act of 1937, as amended in 1979, establishes the Moderate Rehabilitation Housing Program to upgrade substandard housing and provide rental subsidies for low income families and individuals; and WHEREAS, in recognition of the City of Miami severe rental housing shortage affordable to low income families, the U.S. Department of Housing and Urban Development has approved the City's application for the Section 8 Moderate Rehabilitation Housing Program and has reserved $567,000 in annual contract authority to implement the Program; NOW, THEREFORE BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAM I, FLORIDA: Section 1. The City Manager, as chief administrative officer for the City of Miami, is hereby authorized to accept an Annual Contributions Contract for $567,000 under the U.S. Department of Housing and Urban Development Section 8 Moderate Rehabilitation Housing Program. Section 2. The City Manager is further authorized to enter into and execute all necessary documents in order to implement the Program. PASSED AND ADOPTED this 27t1 ATT t MA HIRAAI. �CITY LER C1'tY COMMISSI0�1 NEETMG OF SEP 37 Elownw No. LSAAL M I M S CHIRP D6UTY CITY ATTOPARY APPROM AS TO FON4 AND CORRRCTIIRSS: gm t U-B- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 89CTION 8 MODERATE REHABILITATION HOUSING PWGRAM STATUS REPORT CITY OF MIAMI SEFTMBER 14, 1968 PROGRAM DESCRIPTION The Section 8 Moderate Rehabilitation Housing Program provides for the rehabilitation of substandard rental housing by guaranteeing the property's rental income for a 15-year term. Rents at sufficient levels to support the rehabilitation debt service are afforded to owners by the administering Public Housing Agency (PHA) on behalf of eligible low-income tenants. The PHA receives program funds from the U.S. Department of Housing and Urban Development to finance the rental payments to owners. ADMINISTERING, AGENCY Housing Conservation and Development Agency (the City's Public Housing Agency) 01-0 : 17L0-V I Annual Contract Authority: $567,000 (reserved) Total Contract Authority: $8, 505, 000 (w/o annual adjustments) ADMINISTRATIVE BUDGET Annual fees: $36,146 (15 years) Total Administrative fees: $542,194 (unadjusted for FMR's increases) - ,� 0" /_11 `N /'N �—N ELIGIBLE PROPERTIES Rental Residential property requiring a $1,000/unit minimum rehabilitation cost: Substandard (not in compliance with Section 8 Housing Quality Standards) Standard units with major systems in danger of failure ELIGIBLE OWNERS All private owners (individuals, partnerships, corporations, etc.) ELIGIBLE TENS • Families and elderly individuals meeting the Section 8 Very Low Income limits. • Single residents (non -elderly, non -handicapped, not displaced) who meet the Section 8 Income limits and are already in occupancy (to avoid displacement). SECTION 8 VERY LOM INCOME LIMITS No. of persons in household 1 2 3 4 SECTION 8 FAIR MARKET RENTS (!KRIS) Maximum rents (including utilities) Unit Type 2-Bedrooms Annual Income $10, 800 $12, 300 $13,850 $15, 400 FMR' s $630 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members of the City Commission �,\l FROMCesar H. Odio City Manager RECOMMENDATIO14: C3 DATE S E P 2 .:.' 1988 FILE. J-88-874 SUBJECT Resolution authorizing the City Manager to accept a federal grant REFERENCEfCity Commission Agendi September 27, 1988 ENCLOSURES It is respectfully recommended tllat the City Commission adopt t;te attached resolution authorizing the City Manager to accept an Annual Contributions Contract for $567,000 under the U.S. Department of Housing and Urban Development Section 8 Moderate Rehabilitation Housing Program, and further authorizing the City Manager to enter into and execute all necessary documents in order to implement the program. BACKGROUND: The housing Conservation and Development Agency recommends ratification of the attached Resolution. The Resolution enables the City Manager t.:) accept $567,000 in annual contract authority from the U.S. Department of Housing and Urban Development to implement the Section 8 Moderate Rehabilitation Housing Program. The Section 8 Moderate Rehabilitation Housing Program provides for the rehabilitation of substandard rental housing by guaranteeing the property's rental income for a 15-year term. Rents at sufficient levels to supv.ort the rehabilitation debt financing .are afforded to owners by the local public housing agency (P'iA) on behalf of eligible low income tenants. The PHA receives funds from U.S. HUD to finance the rental payments to ownerz. The Housing Conservation and Development Agency, as the City's PHA, submitted the application to U.S. HUD for assistance under the program and will be responsible for administering the grant according to federal requirements. Att•ichmentA: Proposed Resolution io