10-03-88 agendaCITY OF RICHFIELD, MINNESOTA
Council Letter No. 248
Agenda, October 3, 1988
assue State®ent:
Resolution authorizing administion of a Section 8 Existing Rent
Assistance Program in cooperation with the Metropolitan Council
HRA (Metro HRA).
Background:
State statute allows the
programs within the City
Council took this action
HRA has coadministered a
Approximately 379 reside
subsidies.
Metropolitan Council to operate housing
if authorized by the City Council. The
in 1975. Subsequently, the Richfield
rent assistance program with Metro HRA.
~t households receive rent assistance
At the request of the HRA, the City Council rescinded this
authorization in June, 1988. The present agreements between the
Richfield HRA and Metro HRA expire on October 7, 1988. The basis
for the recision and termination include:
-The Richfield HRA subsidized the cost of local administration
by $22,000 during 1987 because it was not being reimbursed by
Metro HRA for all expenses incurred.
-Program size and continued growth demand more resources
such as office space, staff time, local subsidies.
-More local program control is desired, to permit better
management of existing rental housing resources.
-The Richfield program size and HRD staff expertise have
reduced the need to rely on the Metro HRA relationship as
originally conceived.
During the interim period, July through September, staff has:
-notified HUD and Metro HRA of the recision.
-negotiated alternative courses of action, with cooperation
from all parties at the same time.
-received information from HUD which allows the two program
components, certificate and voucher, to operate
independently at the same time.
-applied for replacement assistance from HUD.
-secured an allocation of assistance directly from HUD
to initiate an independent program with the voucher
component.
-been directed by the HRA on October 3, 1988 to request the
City Council to reconsider the June, 1988 action.
There are currently 379 Section 8 program participants in our
community. The program is distributed in -the following
elements - 316 certificates, 63 vouchers. The certificate and
voucher programs are distinctly different. They do, however,
provide the same basic housing assistance.
The Metro Council HRA administered the Section 8 program for
Richfield; both certificates and vouchers were held in their
name. Once the City of Richfield indicated their intent to
conduct this program independently, Metro HRA retained the title
to the certificate and vouchers. The clients served were within
our community. Legally, the Metro HRA certificates cannot be
used within Richfield without our permission. Part of our
negotiation with HUD and Metro HRA was so that these clients
could continue to be served.
On September 27, 1988 Richfield HRA authorized execution of the
Annual Contribution Contract which effectively transferred title
of 63 vouchers from Metro HRA to Richfield HRA. This leaves a
balance of 316 certificates still held in title by Metro HRA.
The City of Richfield has received assurances that HUD will
replace these certificates with vouchers as they become
available.
This replacement of Metro owned Section 8 certificates with new
HUD vouchers to be titled to Richfield will take approximately
two to six years. In the meantime, it is necessary for the City
to enter into an agreement with Metro HRA in a modified form to
continue servicing clients with Metro Section 8 certificates..
Recommendation:
Adopt the resolution which, 1) authorizes the Richfield HRA and
Metro HRA to coadminister a Certificate Section 8 Existing Rent
Assistance Program, 2) provides for the phasing in of a Richfield
HRA Voucher Section 8 Program in cooperation with Metro HRA. The
resolution will be provided at the Council Meeting.
Basis of Recommendation:
-Unless approved, approximately 379 Richfield residents would
be without housing assistance starting October 7, 1988.
-An allocation to directly assist a portion of those in
need has been secured.
-HUD is cooperating in providing Richfield an independent
program given funds that are available.
-Metro HRA is cooperating in assisting in implementing
an independent program in Richfield.
-The City Council authorization, and the future Metro HRA
role in Richfield is contingent on continued cooperation
by HUD and Metro HRA.
-Partial independence sets a precedence for future allocation
and support permitting us to grow into full independence.
-HUD has indicated that the Certificate and Voucher Programs
are distinct enough to allow a Richfield HRA Voucher and
Richfield HRA/Metro HRA Certificate program to co-exist.
-The HRA has authorized the ACC to initiate a Voucher Program
and requests the City Council to authorize a continuing
relationship with Metro HRA as discussed herein.
-The ACC and Metro HRA agreements will reduce the need for the
Richfield HRA to subsidize the program and,. with future
allocations, totally eliminate the subsidies.
Alternative Recommendation:
1 Choose not to renew a cooperative relationship with Metro
HRA. However, if that course was selected, approximately 316
residents would have to relocate from Richfield to continue
to receive assistance. An additional 63 residents may be
without rental assistance for a few months while an interim
exchange period of Metro HRA Voucher for Richfield HRA
Voucher occurred.
2) Request the Richfield HRA to not accept the Voucher
allocation received and authorize the Metropolitan Council to
assume all administrative responsibilities.
Decision/Discussion Mode:
The HRA has directed staff to initiate agreements to ensure
uninterrupted service to residents participating in the program.
This is pending firm verification from HUD and Metro HRA that the
Richfield direction toward independence will continue to be
supported.
Respectfu y submitted,
James Prosser
City anager
JDP:sae