City of Culver City, California
Agenda Item Report
Meeting Date: July 23, 2012 Item Number: JC-2
JOINT CITY COUNCIL/CULVER CITY HOUSING AUTHORITY: (1) Adoption of a City
Council Resolution Approving the Transfer to the Culver City Housing Authority of
the Rights and Obligations Under the Section 8 Annual Contributions Contract
between the City of Culver City and the United States Department of Housing and
Urban Development; and (2) Adoption of a Resolution by the Culver City Housing
Authority Board Approving the Transfer to the Housing Authority of the Rights and
Obligations of the City of Culver City Under the Section 8 Annual Contributions
Contract between the City of Culver City and the United States Department of
Housing and Urban Development.
Contact Person/Dept.:
Tevis Barnes
Phone Number:
(310) 253-5782
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification Meetings and Agendas – City Council (07/20/12); US Department of
Housing and Urban Development Los Angeles Field Office (06/15/12)
Department Approval:
Sol Blumenfeld (07/12/12)
City Attorney/Housing Authority Counsel
Approval:
Carol Schwab (by H. Baker) (07/18/12)
Chief Financial Officer Approval:
Jeff Muir (07/19/12)
City Manager/Executive Director Approval:
John M. Nachbar (07/20/12)
RECOMMENDATION:
Staff recommends the City Council:
(1) Adopt a resolution approving the transfer to the Culver City Housing Authority
(Housing Authority) the rights and obligations of the City of Culver City (City) under
the Section 8 Annual Contributions Contract (ACC) between the City and the United
States Department of Housing and Urban Development (HUD);
AND
Staff recommends the Housing Authority Board:
(1) Adopt a resolution approving the transfer to the Housing Authority of the rights
and obligations of the City under the ACC.
BACKGROUND:
The Section 8 Housing Choice Voucher Program (HCVP) provides tenant based
rental assistance (the rental subsidy is paid directly to a private property owner on
behalf of the participating household) to assist extremely-low, very-low and low City of Culver City, California
Agenda Item Report
income households to find decent, safe and sanitary affordable housing. Since the
City of Culver City entered into a Master Section 8 ACC with HUD on February 24,
1976. Since 1976, an average of 250-300 households annually are assisted through
the HCVP. Additionally, 150 property owners currently participate in the program
making their units available to HCVP participants. The average rental subsidy paid
per household per year is $6,000. Currently, there are 732 households on the
HCVP Waiting List with an average wait period of 5 years.
DISCUSSION:
Pursuant to Assembly Bill 1X 26 (AB 26) and other applicable State Law, the City
Council activated the Culver City Housing Authority at the City Council meeting of
January 9, 2012. Also, at this time, the City Council and Housing Authority Board
adopted respective resolutions which transferred (the City Council) and accepted the
transfer (the Housing Authority) of all housing assets, rights, powers, duties,
obligations, liabilities, and function previously performed by the Culver City
Redevelopment Agency under Part 1.85 of Division 24 of the Health and Safety
Code subject to the reservations stated in the resolutions.
Approval of the above resolutions did not include the HCVP which is federally
funded and not under the jurisdiction of the former Redevelopment Agency.
Approval of the proposed resolutions will effectively transfer all HCVP rights and
obligations under the ACC to the Housing Authority. Upon approval, all affordable
housing related activity, rights, obligations, assets and liabilities will be under the
auspices of the Housing Authority.
FISCAL ANALYSIS:
$1.9 million in grant funding for the provision of rental subsidies and program
administration of the HCVP will be transferred from the City to the Housing Authority.
This transfer will have no impact on the current functions or funding of the Section 8
HCVP. The Housing Authority will need to execute a new Depository Agreement
(Form HUD 51999) with the bank holding the accounts that receive deposits of the
HCVP payments from HUD (Bank of America). The HUD Los Angeles Field Office
has been notified of this pending transfer and they only require copies of the
approved Staff Report and Resolutions along with the newly executed Depository
Agreement. Should the City Council and Housing Authority adopt the proposed
resolutions, staff will complete these administrative steps.
ATTACHMENTS:
1. Proposed City Council Resolution
2. Proposed Housing Authority Resolution
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
Adopt a resolution approving the transfer to the Housing Authority of the rights
and obligations of the City under the Section 8 ACC with HUD.
That the Housing Authority:
Adopt a resolution approving the transfer to the Housing Authority of the rights
and obligations of the City under the Section 8 ACC with HUD.
MEETING DATE: 07.23.12
AGENDA ITEM: (1) Adoption of a City Council Resolution Approving the
Transfer to the Culver City Housing Authority of the
Rights and Obligations Under the Section 8 Annual
Contributions Contract with the United States
Department of Housing and Urban Development; and (2)
Adoption of a Resolution by the Culver City Housing
Authority Approving the Transfer to the Housing
Authority of the Rights and Obligations of the City of
Culver City Under the Section 8 Annual Contributions
Contract with the United States Department of Housing
and Urban Development
ATTACHMENTS
Pages
1. City Council Resolution No. 2012-R approving
the transfer to the Culver City-Housing Authority
of the Rights and Obligations of the City under the
Section 8 Annual Contributions Contracts with
the United States Department of Housing and Urban
Development.
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2. Housing Authority Resolution No. HA 2012- approving
the transfer to the Housing Authority of the Rights and
Obligations of the City of Culver City under the
Section 8 Annual Contributions Contracts with
the United States Department of Housing and Urban
Development from the City.
3-4 I F
RESOLUTION NO. 2012-R
RESOLUTION OF THE CITY COUNCIL OF CULVER CITY, CALIFORNIA
APPROVING THE TRANSFER TO THE CULVER CITY HOUSING
AUTHORITY OF THE RIGHTS AND OBLIGATIONS OF THE CITY UNDER
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THE SECTION 8 ANNUAL CONTRIBUTIONS CONTRACT WITH THE
UNITED STATES DEPARTMENT OF HOUSING AND URBAN
5 DEVELOPMENT.
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7 WHEREAS, the City of Culver City in its capacity as a public housing agency
8 (PHA) under the Section 8 Tenant Based Assistance: Housing Choice Voucher Program
9 ("Section 8 Program") previously entered into a Master Section 8 Annual Contributions
10 Contract dated as of February 24, 1976 with the United States Department of Housing and
11 Urban Development (HUD) as supplemented by periodic funding agreements with HUD
12 ("Annual Contributions Contract"); and
13 WHEREAS, the Annual Contributions Contract commits HUD to make payments
14 to the City, over a specified term, for housing assistance payments to owners and for the
15 City's administrative fee and obligates the City to administer the Section 8 Program in
16 accordance with HUD regulations and requirements; and
17 WHEREAS, the Culver City Housing Authority (the "Authority") is a public.
18 housing authority, established and authorized to act pursuant to the Housing Authorities Law
19 of the State of California; and
WHEREAS, the City desires to designate the Authority to serve as the PHA and
to administer the Section 8 Program under the Annual Contributions Contract; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
NOW THEREFORE, the City Council of the City of Culver City DOES HEREBY
RESOLVE, as follows:
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27 APPROV 0 FORM:
OL A. SCHWAB, City Attorney
1 1, The City Council has received and heard all oral and written objections to
2 matters pertaining to this transaction, and all such oral and written objections are hereby
3 overruled.
2. The City Council hereby finds and determines that the foregoing recitals are
true and correct.
3. The City Council hereby approves and authorizes the transfer of the Section
8 Program to the Authority and delegates to the Authority all of the powers, functions and
obligations of the City under the Annual Contributions Contract
4. The City Council hereby approves of and authorizes an assignment by the
City to the Authority of the City's rights and interests in the Annual Contributions Contract,
including but not limited to the City's right to receive payments from HUD with respect to the
Section 8 Program.
5. The City Manager or designee is hereby authorized and directed to take all
reasonable and necessary actions and sign on behalf of the City all reasonable and
necessary documents and instruments first approved in writing by the City Attorney to carry
out the transfer from the City to the Authority of the Annual Contributions Contract and the
City's rights and obligations with respect to the Section 8 Program.
6. This Resolution shall take effect immediately upon its adoption.
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, 2012. APPROVED AND ADOPTED, this day of
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ATTEST:
MARTIN R. COLE, City Clerk
Al2-00397
ANDREW WEISSMAN, MAYOR
City of Culver City, California
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-2-- 1 RESOLUTION NO. 2012-HA
RESOLUTION OF THE CULVER CITY HOUSING AUTHORITY APPROVING
THE TRANSFER TO THE HOUSING AUTHORITY OF THE RIGHTS AND
OBLIGATIONS OF THE CITY OF CULVER CITY UNDER THE SECTION 8
ANNUAL CONTRIBUTIONS CONTRACT WITH THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
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WHEREAS, the City of Culver City in its capacity as a public housing agency
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(PHA) under the Section 8 Tenant Based Assistance: Housing Choice Voucher Program
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("Section 8 Program") previously entered into a Master Section 8 Annual Contributions
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Contract dated as of February 24, 1976 with the United States Department of Housing and
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Urban Development (HUD) as supplemented by periodic funding agreements with HUD
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("Annual Contributions Contract"); and
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WHEREAS, the Annual Contributions Contract commits HUD .to make payments
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to the City, over a specified term, for housing assistance payments to owners and for the
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City's administrative fee and obligates the City to administer the Section 8 Program in
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accordance with HUD regulations and requirements; and
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WHEREAS, the Culver City Housing Authority (the "Authority") is a publi
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housing authority, established and authorized to act pursuant to the Housing Authorities La
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of the State of California; and
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WHEREAS, the Authority desires to serve as the PHA and to administer the
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Section 8 Program under the Annual Contributions Contract; and
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WHEREAS, all other legal prerequisites to the adoption of this Resolution have
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occurred.
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NOW THEREFORE, the Culver City Housing Authority Board DOES HEREBY
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RESOLVE, as follows:
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1. The Authority Board has received and heard all oral and written objections to
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matters pertaining to this transaction, and all such oral and written objections are hereby
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overruled.
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4 ATTEST:
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G
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L A. SCHWAB, Housing Authority
ff 51- Counsel
25 MARTIN R. COLE, Secretary
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Al2-00395
APPROVED AS TO F
2 2. The Authority Board hereby finds and determines that the foregoing recitals
3 are true and correct.
4 3_ The Authority Board hereby approves and accepts the transfer of the Section
5 8 Program to the Authority and the delegation to the Authority of all of the powers, functions
6 and obligations of the City under the Annual Contributions Contract,
7 4_ The Authority Board hereby approves and accepts the assignment by the
8 City to the Authority of the City's rights and interests in the Annual Contributions Contract,
9 including but not limited to the City's right to receive payments from HUD with respect to the
10 Section 8 Program_
11 5. The Executive Director or designee is hereby authorized and directed to take
all reasonable and necessary actions and sign on behalf of the Authority all reasonable and
necessary documents and instruments first approved in writing by the Authority's General
Counsel to carry out the transfer from the City to the Authority of the Annual Contributions
Contract and the City's rights and obligations with respect to the Section 8 Program.
6. This Resolution shall take effect immediately upon its adoption.
APPROVED AND ADOPTED, this day of
,2012
ANDREW WEISSMAN, Chairperson
Culver City Housing Authority
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