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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