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HomeMy WebLinkAbout3163 Vendor Subject Department Status Code Amount Begin Date End Date Review Date Insurance Comments Contract Number 3163 BREMERTON HOUSING AUTHORITY Rental Rehabilitation Program CDBG MOU File Class LEG 12-1 $ 02/08/1990 12/31/2005 02/15/2007 GL $ AL $ E&O $ Insurance Total $ Insurance Review Date Inactive Vault 01/01/2007 MEMORANDUM OF UNDERSTANDING RENTAL REHABILITATION PROGRAM CITY OF BP.]Duo. TON AND BREMERTON HOUSING AUTHORITY This Memorandum of Understanding ("Memorandum") is between city of Bremerton Department of Community Development, Community Services Division (City), and The Bremerton Housing Authority (BHA). This Memorandum sets forth the understandings of the parties concerning the City's Rental Rehabilitation Program ("Program") approved by the Washington State Department of Community Development (StDCD) pursuant to Section 17 of the United States Housing Act of 1937 (42 USC 1437) as amended. The city applied for and received funding from StDCD during fiscal year 1989-90 as a Rental Rehabilitation Program SubGrantee. The funding is used for the rehabilitation of rental properties for the benefit of low and very-low income families in certain target areas and under certain terms and conditions established by the Bremerton City Council through the Housing Rehabilitation Loan Program. BHA receives funding from HUD each fiscal year under the Section 8 Rental Assistance Program. Section 8 Rental Assistance is a rent subsidy provided through vouchers and certificates administered by BHA to income eligible tenants. Section 8 Rental Assistance can be used in conjunction with the Rental Rehabilitation Program to assist income eligible tenants living in rental units rehabilitated through the city's funds pursuant to the Program. The City and BHA set forth this Memorandum of Understanding in order to enhance the cooperation and understanding of Program regulations and guidelines under which they will mutually operate to rehabilitate properties and provide rent assistance to eligible tenants. I. G~NERAL ADMINISTRATION A. city will carry out its Rental Rehabilitation Program in accordance with Section 17 and other applicable Federal Laws, the regulations listed in 24 CFR Part 511, and the schedule in its Program Description submitted to and approved by StDCD. B. BHA will administer the Housing Voucher Program funding provided by HUD for the Program in accordance with Section 8 regulations and all other applicable Federal laws. Before HUD and BHA execute an Annual Contributions Contract for voucher funding in support of the Program BHA shall certify to HUD that they have entered into a Memorandum of Understanding with the city that is consistent with BHA's HUD approved Administrative and Equal Opportunity Housing Plans. C. City and BHA agree to designate one (1) contact person who will be involved in the administration of the Rental Rehabilitation program for each agency. The name, title, address and phone number of each contact person will be listed in Exhibit 1 to this Memorandum. D. Advertising and Marketing will be conducted solely~by City in an effort to attract Owners most likely to qualify for Program funds. E. City and BHA agree to complete and submit to HUD all reports required of their respective agencies. F. City and BHA will confer at least quarterly to discuss any Program problems and/or concerns. Additionally, City will inform BHA of any new projects under the Program where Section 8 Rental Assistance will be required, and of changes in previously scheduled Project completion dates. II. ~ A. Eligibility Determinations 1. City will determine Project eligibility after completion of an initial interview with property owners and a preliminary property inspection. All eligibility determinations will be made using applicable Program regulations. 2. City will obtain via the property owner, initial information about income and family size from tenants living in property proposed for the Program. Upon loan closing tenant information will be forwarded to BHA so that BHA may determine the tenant's eligibility for Section 8 Rental Assistance. 3. BHA will offer Section 8 Rental Assistance to only those tenants who meet all of the following criteria: (a) Tenants who are considered "in place". An "in place" tenant is one who is residing in the unit to be rehabilitated at the time the Owner enters into a written rehabilitation agreement with City. (b) Tenants who meet the Very Low Income Limit as set by HUD for the BHA jurisdictional area. **Exception: BHA may issue Section 8 Rental Assistance to a "lower income" family who is physically displaced from their unit due to the actual rehabilitation work, or because of overcrowding if the family is considered to have been "in place" and meets all other criteria. (c) Tenants who are displaced by Rental Rehabilitation Program activity as a direct consequence of the rehabilitation; or those who are economically displaced. (d) Tenants who meet all other applicable Eligibility Requirements as listed in the BHA's Administrative Plan. 4. Upon request by the City an applicant who meets the above eligibility criteria will be immediately issued Section 8 Rental Assistance regardless of other applicants currently on the BHA Section 8 waiting list. 5. With the exception of the initial interview, BHA will perform all necessary tenant interviews, verifications and calculations to determine a tenant's eligibility for Section 8 Rental Assistance. B. Unit Inspections 1. City will conduct a series of inspections consisting of the following: (a) ~ - to determine the amount of work needed to bring the unit into compliance with Program standards. A detailed write up is to be completed (including work required to meet federal Housing Quality Standards, HQS). (b) Proaress - to determine the progress of work to date and the payment of progress draws. (c) Final - to determine satisfactory performance of rehab work and contract requirements. 2. City will notify BHA at the completion of a final inspection so that BHA may proceed with the lease approval process, including an HQS inspection. 3. BHA will conduct an HQS inspection for units occupied by eligible tenants who wish to remain in the unit after the completion of rehabilitation work and of vacant units to be occupied by eligible tenants upon completion of rehabilitation work. (a) BHA's inspection will determine the unit's acceptability based on Section 8 Housing Quality Standards detailed in form HUD 52580 (8-80 and 9-81). C. Use of Section 8 Rental Assistance 1. Except to.the extent other use of Section 8 Rental Assistance is permitted by HUD, BHA shall make available housing assistance funding provided by HUD in support of the Program to issue Section 8 Rental Assistance to eligible families whether or not they stay in the rehabilitated unit, choose to move, or are involuntarily displaced. 2. BHA shall provide Section 8 Rental Assistance to tenants in units rehabilitated with Program funds consistent with mandatory federal preferences. This includes tenants who are: (1) currently living in substandard housing or homeless; (2) rent burdened in excess of 50% of gross income; or (3) involuntarily displaced. Unless otherwise authorized by HUD, tenants assisted through the Program have priority over any other tenants on the BHA Section 8 waiting list. 3. In addition, BHA shall provide Section 8 Rental Assistance to tenants in units rehabilitated with Program funds who are: (1) eligible, in-place tenants whose rent and utilities after rehab will exceed 35% of gross income; or (2) eligible, in- place tenants who will be physically displaced. Section 8 Rental Assistance shall be provided to these tenants above all others on Section 8 waiting lists. 4. Program regulations allow BHA discretion to use up to ten percent (10%) of its Section 8 vouchers and certificates issued during any one year period for tenants who do not qualify for a federal preference. If BHA issues Section 8 Rental Assistance to a tenant in a unit assisted through the Program, but the tenant does not qualify for a Federal preference, the housing voucher or certificate shall be counted against the then percent (10%) discretionary authority. D. Issuance of Section 8 Rental Assistance 1. City agrees to give BHA at least 30 days notice of the actual need for issuance of Section 8 Rental Assistance for the Program. Said notice shall be given in writing and include information regarding the number of Section 8 vouchers or certificates needed, the location of unit(s) to be subsidized, approximate bedroom sizes, and other pertinent data obtained through the Owner's Application of Interest and the Tenant Information Form. 2. BHA shall issue Section 8 Rental Assistance in a timely manner to all eligible families who: (1) decide to move even when they are not required to move; (2) are permanently relocated due to overcrowding, or to unit reconfiguration during rehabilitation, or to a change of use of the unit; (3) decide to remain in their unit after rehabilitation and are paying more than 35% of gross income for rent. 3. BHA and City agree that all tenants issued Section 8 Rental Assistance in conjunction with this Program will be required to attend a Section 8 Rental Assistance briefing prior to the execution of a Housing Assistance Payment Contract with the Owner. 4. City will notify BHA and StDCD when its Rental Rehabilitation funds have been expended and remaining housing assistance funding is no longer needed for its Program. 5. BHA will notify City when its maximum number of available Section 8 certificates or vouchers has been used. 6. BHA agrees that upon request by City, it will refer Section 8 eligible tenants from its waiting list to owners of vacant units rehabilitated through the Program. 7. BHA shall keep City apprised of the availability of Section 8 vouchers or certificates at least monthly regarding availability of Section 8 resources including anticipated turnover rate, and any need for additional Section 8 support for the Program. BHAwill request, with support from City, additional Section 8 Rental Assistance from HUD for the Program is necessary. 8. BHA will provide at least 60 days notice to the City of its intent to apply to HUD for Section 8 Rental Assistance for its general use. 9. BHA will provide in its Administrative Plan for the Rental Rehabilitation Program discretionary authority to use up to ten percent (10%) of the housing vouchers or certificates that are issued during any one year period for families in units assisted through the Program who do not qualify for a federal preference. E. Owner Assistance 1. city agrees to maintain a close relationship with Project Owners throughout the rehabilitation process and to provide assistance in the following manner: (a) Conduct an initial interview to discuss program requirements and regulations. (b) Assist in the obtaining of bids from qualified contractors, including conducting a Pre- construction conference with the owner and contractor to sign the contracts. (c) Assist in the loan process including the following: (1) Preparation of letter Of introduction for property to local Lender. (2) Sending loan package to local Lender for Owner to obtain rehab funds. (3) Fund reservation from StDCD. (4) Set up construction account to include all rehabilitation funds. (5) Notifying Lender of Draw Requests and Construction Completion. (d) City will make final approval of all rehabilitation work and issue the owner the final draw. 2. city and BHA agree that Owners will be required to attend a Housing Authority briefing prior to the execution of a Housing Assistance Payment Contract with the Housing Authority. The briefing will include information regarding Section 8 program regulations and procedures. F. Reporting 1. City shall report project completion and tenant information to HUD within 90 days of completion. BHA shall assist City to meet this requirement by providing information about use of Section 8 vouchers or certificates issued, within 60 days of project completion so that information can be included in the report to HUD. G. Long Range Program Assistance 1. BHA will inform the City in writing (including appropriate documentation) of situations where owners of property rehabilitated using Program funds (1) do not properly maintain property occupied by Section 8 tenants; or (2) refuse to rent to Section 8 eligible tenants. City Program loan documents require owners to properly maintain units and to not discriminate against Section 8 eligible tenants. Non-compliance with loan requirements could result in loan acceleration at the sole discretion of the City. A. Both City and BHAunderstand that this Memorandum is not subject to StDCD approval, and that if there is any inconsistency between BHA's Administrative Plan (including any HUD-approved amendments) and this Memorandum, the Administrative Plan shall prevail. B. There are no special fee arrangements between City and BHA related to the Program, Section 8, or to this Agreement. S I GNED, THE HOUSING AUTHORITY OF THE CITY OF BREMERTON, WASHINGTON Executive Director CITY OF BREMEIlON LOUIS MENTOR Mayor Attest:..~_~ ~ ~~Form: C~f~ Clerk ' ~ ~/--C~- ~tt~rney ' RENTAL REHABILITATION PROGRA~ MEMORANDUM OF UNDERSTANDING EXHIBIT I City of Bremerton. Community Services Contact Person: Carol Dickinson, Manager- Community Services 239 Fourth Street Bremerton, Washington 98310 478-5245 Bre~erton Housino Authorit~ Contact Person: Merrill Wallace, II Executive Director Bremerton Housing Authority 110 Russell Road Bremerton, Washington 98310 479-3694