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Res 2700 12/16/19801 . t, RESOLUTION NO. AW A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH THE COMMUNITY ACTION CORPORATION OF WICHITA FALLS AND NORTH TEXAS AREA FOR ADMINISTRATION OF THE SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR EXISTING HOUSING WHEREAS, the 1980 Housing Assistance Plan, prepared as part of the 1980-81 Community Development Block Grant application, stated that over 3500 families in Wichita Falls need housing assistance; and WHEREAS, the Board of Aldermen authorized the City Manager to execute the Five Year Annual Contributions Contract with the Department of Housing and Urban Development for Section 8 - Housing Assistance Payments Program for Existing Housing on February 3, 1976; and WHEREAS, on December 7, 1976, the Board of Aldermen approved the resolution awarding the contract for the administration of the Section 8 program to the Community Action Corporation; and WHEREAS, the Community Action Corporation has executed that contract during the past four years. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS THAT: Stuart A. Bach, City Manager, is authorized to execute a one year contract with the Community Action Corporation of Wichita Falls and North Texas area for the administration of the Section 8 Housing Assistance Payments Program for Existing Housing; a copy of such contract is attached. PASSED AND APPROVED THIS AW4day of ( 1. ei2/ 1980. M A Y O R ATTEST: CITY CLERK Page 7 of 17 Pages Agenda Item No. 10.b. SECTION 8 ADMINISTRATIVE CONTRACT STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF WICHITA This agreement made and entered into this the day of 1980, by and between the City of Wichita Falls, Texas, a municipal corporation, hereinafter called City, and Community Action Corporation of Wichita Falls and North Texas Area, hereinafter called CAC. WITNESSETH: FOR AND IN CONSIDERATION of the mutual covenants herein contained, City and CAC agree as follows: I. CAC shall administer the program of providing lower-income housing assistance within the City of •Wichita Falls, Texas, under the authority of Sec. 8 of the Housing and Community Development Act of 1974, Pub. L. 93-383; 88 Stat. 633; and codified as 42 U.S.C.A. SEC. 1437f. City shall be contracting with the United States Department of Housing and Urban Development (hereinafter referred to as HUD) for the administration of the City strictly for the administration of this program. All contacts with HUD regarding this program shall be made through City. II. CAC shall comply with all the provisions of the Administrative Plan for the Operation of the Housing Assistance Payment Program of the City of Wichita Falls, Texas, which is attached hereto as Exhibit "A", the provisions of which are incorporated herein. III. The term of this agreement shall be from January 1, 1981 to midnight, December 31, 1981. If either party to this agreement should desire to terminate it prior to the date of expiration, they may do so by giving thirty days notice in writing to the other party of their intention to terminate this agreement; otherwise, this agreement shall continue in full force and effect until the expiration of the term set out above. Page 3 of 17 Pages Agenda Item No. 10.b. CAC shall submit a statement to City each month for expenses incurred during that month. CAC shall keep all necessary supporting data and documentation on all expenditures under this program. City shall receive an itemized list of expenses once a month, signed by the Executive Director of CAC, showing the expenses incurred by CAC during that month. Statements from CAC for reimbursement of expenses which are received by City on Tuesday shall be paid the following Monday. Total costs incurred each year under this paragraph shall not exceed the Annual Budget approved by the City. V. Staff persons employed by CAC to administer this program shall be included in the regular payroll of CAC which the City processes. VI. CAC shall maintain supporting data and documentation for all expenses incurred in administering this program in a manner and in such condition as to be suitable for an unannounced federal financial audit. This data and documenta- shall be in compliance with Paragraph 2.13 of the Annual Contributions Contract and in accordance with Chapter 3 of HUD Handbook 7420.6 and shall be provided in sufficient detail to the City in order to meet HUD accounting standards for the Section 8 program. Other supporting financial information and program documenta- tion shall be provided to the City as necessary. VII. City shall maintain a bank account and a basic general ledger on an accrual basis, prepare a monthly financial statement and make payments on CAC certified expenses. 2- Page 4 of 17 Pages Agenda Item No. 10.b. VIII. City's liaison with CAC shall be the Principal Planner for Community Develop- ment in the Planning Department of the City of Wichita Falls or an appointed designee. All questions and problems concerning accounting, fiscal management and other matters of concern to CAC regarding the administration of this program shall be directed to City's liaison who will seek out the correct information and respond as quickly as possible. IX. All contacts with HUD offices shall be made by City, including fund requests, policy questions, and requests for increases in the fair market rent for the number of units authorized under this program. X. CAC shall submit a list of landlords, tenants and amounts due to be paid to these individuals, to City on the third Tuesday of the month, for payment on the Monday nearest the first of the month. This list shall include any changes made during the month. XI. CAC shall comply with the provisions of the Equal Opportunity Housing Plan EOHP) attached hereto as Exhibit "B", which are expressly incorporated herein and made a part of this agreement. It is expressly agreed that the EOHP may be amended at any time by mutualyy agreement in writing signed by both parties to this agreement. XII. CAC shall hold City harmless from any damages or injury to persons or property and from any responsibility for any financial errors caused by or arising out of CAC's operation and administration of the Sec. 8 Housing Assistance Program for City. 3- Page 5 of 17 Pages Agenda Item No. 10.b. XIII. CAC shall comply with the provisions contained in the Terms and Conditions Constituting Part II of the Annual Contributions Contract, a copy of which is attached hereto as Exhibit "C", and which are expressly incorporated herein and made a part of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be signed as of the day and year first above written. CITY OF WICHITA FALLS, TEXAS BY: Stuart Bach, City Manager ATTEST: CITY CLERK COMMUNITY ACTION CORPORATION OF WICHITA FALLS AND NORTH TEXAS AREA BY: Angus Thompson, Executive Director ATTEST: Approved as to form: City Attorney Page 6 of 17 Pages Agenda Item No. 10.b. 4- COMMUNITY ACTION CORPORATION SECTION 8 BUDGET 1981 Salaries (Housing Director and Secretary) $20,700 Salary (Part-time employee) 5,740 Memberships 150 Travel 1,400 Supplies 775 Telephone 400 Unemployment Insurance 100 Workman Compensation 165 F.I.C.A. 1,760 Health Insurance 725 Advertising 250 Postage 600 TOTAL 32,765.00 Page 8 of 17 Pages Agenda Item No. 10.b. CITY OF WICHITA FALLS ADMINISTRATIVE PLAN FOR THE OPERATION OF THE HOUSING ASSISTANCE PAYMENTS PROGRAM I. STATEMENT OF OVERALL APPROACH AND OBJECTIVES IN ADMINISTERING THE SECTION 8 EXISTING HOUSING PROGRAM A. The Section 8 Housing Assistance Payment Program will be operated by the Community Action Corporation of Wichita Falls and North Texas Area under a subcontract with the City of Wichita Falls. The City will monitor the operation of the subcontract through the Community Development Section of the Planning Department. Unit inspections will be accomplished through the Code Enforcement section of the Building Inspection Department. Fiscal management of the program will be accomplished by the Division of Accounting and Finance. Community Action Corporation will employ a housing administra- tor and secretary to accomplish day-to-day program operation. This operation will be monitored by the Executive Director of CAC with quarterly visits by City staff or more frequently if needed. It is expected that this framework will provide sufficient monitoring and supervision to ensure compliance with all regulations governing this program. B. An attitudinal survey of participants conducted in May, 1978, revealed that very few families would need or want to move as a result of program partici- pation. Specifically, seven percent of the families interviewed stated that if afforded the opportunity, a move would be desirable. When questioned further, it was ascertained that the move would be from one impacted area to another. C. The quantity and quality of housing available to program participants is considered to be sufficient in all areas of the City for the operation of this program. Past experience has demonstrated that sufficient owner response in present in the City. Further, code enforcement inspections have revealed that the housing quality is acceptable. However, the activa- tion of available housing must be stimulated through the marketing methods described in the Equal Housing Operation Plan, Objective I. D. All eligible participants will be provided assistance in locating suitable housing. The Housing Administrator will maintain a listing of all past and current owners. This listing will be made available to all participants. The participant will be encouraged to contact other owners within the City as well. If discriminatory practices are encountered in the housing search, the procedures identified in the Equal Housing Opportunity Plan will be employed. To ensure that this listing remains current, the Housing Director will update this listing on a quarterly basis. E. The Housing Director will create and maintain a listing of available housing units by bedroom size and current rent. This will be accomplished by surveying current Section 8 owners, local property management concerns, newspaper listings and contacts through the Rental Property Association. To maintain a current listing, a monthly telephone survey will be conducted to provide updates. II. PLANS FOR THE ADMINISTRATION OF PROGRAM FUNCTIONS A. Outreach to Families and Contact with Owners 1. Generally, the outreach procedures described in Equal Opportunity Housing Plan (EOHP) in Section I will be employed. In the event this Page 9 of 17 Pages Agenda Item No. 10.b. ADMINISTRATIVE PLAN, page 2 effort does not produce an application group consistent with the goal, an intensification of advertising through area media and a concentra- tion of outreach programming in neighborhood action groups will be utilized. 2. In the event the outreach plan stimulates a flow of applicants greater than the capacity to accommodate the flow, a waiting list and/or a suspension of application-taking will be initiated as described in the EOHP, Section III-A. 3. Owners and the real estate community will be informed of the program utilizing the procedures described in the EOHP, Section II. 4. To ensure that sufficient units are located outside areas of impaction, the Community Development Section of the Planning Department will monitor the location of all units. If sufficient units are not evident, then an intensification of outreach to owners and property managers will be accomplished. B. Completion of Applications, Determination of Eligibility and Selection of Families. 1. Pre-applications will be accepted by mail and in person and will be time and date stamped. The Housing Administrator will set up an appointment for each family as the pre-applications are received. Applicants will be informed to bring all necessary data to complete their application. The Housing Administrator will assist each appli- cant during the appointment in the completion of the full application. Preliminary eligibility will be determined at this time. If the appli- cant appears to be eligible, he will be given a certificate holders packet. The Housing Administrator will explain all items contained in the certificate holders packet as well as 1) how to find a suitable unit, 2) the need to shop around, 3) the shopping incentive credit 4) the known available units, 5) the implication of the utility allowance, 6) lease procedures, and 7) tenant rights and responsibilities. If the pre-application procedure results in more applications than units, a waiting list will be developed. This list will provide information sufficient to determine priorities for assignment to units as units become available. If the waiting list becomes such as to preclude a family from receiving a unit in a calendar year, application-taking will be suspended in accordance with the EOHP, Section III-A. 2. The two basic criteria for eligibility in the Wichita Falls program are: a) the applicant must qualify as a family, and b) the family gross income must fall within the income limits for the City. Other factors affecting applicant eligibility have been adopted by the City as described in HUD Handbook 7420.7, Chapter 4-4c(1)-(4) . Page 10 of 17 Pages Agenda Item No. 10.b. ADMINISTRATIVE PLAN, page 3 Verification of the eligibility documentation provided shall be done by the Dousing Administrator using documents provided by the family, mailing forms to the source of income, and contacting the source directly if there is a delay. The Office of the Executive Director of Community Action Corporation will review twenty percent (20%) of the income verifications performed by the Housing Administrator to insure the accuracy of the calcu- lations. If the income is verified as eligible, a certification of family participation will be signed by the Housing Administrator and the family notified by mail. The certification may be either mailed to the eligible participant or picked up by the family in the Housing Assistance office. 3. If an applicant is found to be ineligible, the applicant will be noti- fied in writing. This notification shall include information for requesting an informal hearing if the applicant desires. 4. The City of Wichita Falls will give preference to certain groups of applicants. The Housing Administrator will use the priority ranking listed in the EOHP, Section III-B. These priorities will facilitate the selection of families to be assigned within each unit size. 5. The Housing Administrator will monitor and review the characteristics of applicant families to insure that 1) 30% of the participants are very low-income families, 2) distribution between elderly/nonelderly authorized is maintained, 3) unit size authorization is maintained, and 4) the number of HAP contracts does not exceed the number of units authorized. Although current regulations provide for exceeding the various distributions, in no case shall the Housing Administrator exceed distributions authorized without obtaining prior approval of the Director of Planning. CD Section will monitor distributions on a monthly basis to insure adherence to authorized distributions. C. Verification of Income and Determination of Gross Family Contribution and Rent Credit 1. The procedures to be followed in verification of income will be as described in II-B-2b. 2. The Housing Administrator will be responsible for determining the amount of Gross Family Contribution (HUD 7420.7 Chapter 4) . The Office of the Executive Director of CAC shall review twenty percent (20%) of the determinations in order to insure accuracy of the calculations. On a quarterly basis, the CD Section of the Planning Division will perform. a monitoring visit. At this time a spot-check of calculations will determine that proper procedures are being followed. page 11 of 17 Pages Agenda Item No. 10.b. ADMINISTRATIVE PLAN, page 4 D. Briefing of Families and Issuance of Certificates 1. The methodology to be followed in providing information concerning the program will be that described in the EOHP at Objective I. 2. The additional assistance to be provided families approaching expira- tion of certificates will be on an as needed basis to be performed by the Housing Administrator. In the case of an encountered housing discrimination, the procedure listed in the EOHP Section IV will be provided. 3. If it becomes necessary to extend a Certificate beyond 60 days, the Housing Administrator will review the case. If a justifiable cause is determined, e.g. , lack of available units, insufficient unit auth- orizations, etc. , the Administrator may grant additional 60 day exten- sions, not to exceed one calendar year. E. Housing Quality Standards and Inspections 1. The housing acceptability criteria described in HUD Handbook 7420.7 Chapter Five are hereby established as minimum housing quality standards. 2. The following internal system will be used to obtain unit inspections, both initially and for reinspection: a) The City of Wichita Falls will perform inspections using City Housing Code Enforcement Officers. Inspections will be scheduled as requests are submitted to eliminate any possible discrimination complaints. The inspec- tion checklist used will be in accordance with standards established by the City of Wichita Falls' Minimum Housing Code. b) The City of Wichita Falls will submit the list of inspection results to Community Action Corporation as inspections are performed. c) If the unit fails inspection, the family and the owner will be notified by mail. Differences in perception of the adequacy of the unit will be resolved by the Housing Administrator. d) The Housing Administrator will keep a file by month of contract execution for annual re-inspection. e) The Housing Administrator will maintain a list of Request for Lease Approval, showing date of request, date submitted for inspection, and date inspected. This information will also be retained in each family's file. F. Lease Approval and Housing Assistance Payments Contract Execution 1. Once a unit has passed inspection, the lease will be checked for reasonableness and consistency with the fair market rent and for the correct length of the contract. The reasonableness of rent will be determined on the basis of previous rent of the same unit, previous Page 12 of 17 Pages Agenda Item No. 10.b. ADMINISTRATIVE PLAN, page 5 rent of similar units, and general knowledge of rents for similar units. The lease must also include the required HUD provisions as set forth in 24 CFR, 882.107(b) and 882.210(f) . The lease will be reviewed following the criteria set forth in HUD Handbook 7420.7, Chapter 4.17. 2. The following procedure will be used to explain lease approval and regulations to owners: a) The Housing Administrator will contact the Wichita Falls Board of Realtors and community organizations. Efforts will be made to contact owners outside of minority and low income concentrated areas. b) Neighborhood groups will be asked to contact owners in their neighborhood to accommodate families desiring to remain in their own community. c) The Housing Administrator will maintain a listing and map designating area concentrations and owners desiring to partici- pate in the program. This list will be included in the tenant's package. d) The Housing Administrator will be responsible for explaining the program to owners who inquire. The program will be explained in detail to owners who have signed a Request for Lease Approval on a case by case basis or in briefing sessions. e) The reasonableness of the rent will be determined by the location of unit, quality, amenities, facilities, and maintenance of unit. f) The Housing Administrator will determine the amount of rent reduction, if applicable, and will give an appointment date and time for the execution of the lease and Housing Assistance Payments contract. g) A copy of the Housing Assistance Payments contract will be transmitted to the City of Wichita Falls for their records and subsequent payment. G. Payments to Owners/Tenants CAC will submit to the City a listing of landlords and tenants eligible to receive rents or utility allowance payments on the third Tuesday of the month. This listing will include: a) Name of party receiving payment, contract number, and vendor number that authorizes payment. b) A listing of any changes which occurred during the month: 1. If the change is a utility allowance charge, supporting documenta- tion will be provided; 2. If the change results in a new contract, the contract will be provided; Page 13 of 17 Pages Agenda Item No. 10.b. ADMINISTRATIVE PLAN, page 6 3. If the payment is occurring for the first time, contract and utility allowance documentation will be provided. c) If the payment is for damages or lost rent, an explanation will be attached. Checks will be processed by the City and returned to CAC for mailing to recipients on the first Tuesday of the month. Rent checks for units vacated during the last two weeks will be returned to the City with an explanation. Although HUD does not require that miscalculations in income verification resulting in overpayments be refunded to the Section 8 budget, CAC will correct errors as soon as they are discovered. The City will monitor CAC's administration of the Section 8 program, but assumes no responsibility for any errors, or discrepancies discovered or undiscovered during moni- toring efforts. CAC will keep all records pertaining to family eligibility, income verifi- cation, unit inspections and leases in a manner suitable for an unannounced federal performance audit. H. Information and Assistance for Participating Families 1. The Housing Administrator will maintain a file by month of lease execution for reexamination of units and recertification of a family income. A special reexamination will be made for a decrease in family income or a change in family size between annual recertifications. All tenants will be recertified annually. 2. The Housing Administrator will document reports made by families that the owner is not complying with the lease or is not main- taining the unit in compliance with the housing standards, and will proceed to investigate the complaints. 3. Families will notify the Housing Administrator when they decide to vacate their unit. The date of this notification will be indicated in the family's file. The family will be advised to contact the owner, and to pay all bills. Families that leave owing money will not be eligible for further participation in the program. 4. If a family wishes to move within the program area, they will be issued a new certification to look for new housing. 5. If the family is terminated from the program, the first family on the waiting list whose income has been verified will be notified by mail of the availabililty of certification. An appointment will be set up for a meeting to discuss the program and answer any questions. 6. Any new developments received on the program will be forwarded to the participants as deemed necessary by the Housing Administrator. Page 14 of 17 Pages Agenda Item No. 10.b. ADMINISTRATIVE PLAN, page 7 7. The Housing Administrator will be familiar with agencies and organizations able to respond to the housing and non-housing problems of the applicants and tenants. I. Termination and Family Moves 1. The owner's request for eviction will be reviewed by the Housing Administrator on a case by case basis. The resulting action will be based upon an investigation of the alleged discrepancy and the owner will be notified prior to the twenty (20) day time limit. The request and response will be placed in the family's file. 2. The Housing Administrator will determine whether or not the family gave proper notice to vacate by checking the family's file for the date of notification. The owner's request for payment will be determined by the owner's filed notice of unit vacancy. The owner's claim for damages will be determined by comparing the original inspection check list with existing conditions. 3. If the family is terminated from the program, the first family on the waiting list whose income has been verified will be notified by mail of the availability of certification. An appointment will be set up for a meeting to discuss the program and answer any questions. 4. Each case that results in eviction, termination of program partici- pation, or failure to give proper notice will be reviewed by the Housing Administrator. If the review results in a determination of ineligibility for future program participation, the family will be notified in writing providing a reason(s) for the determination and process for appeal. J. Complaints and Appeal 1. The Housing Administrator will assist the affected family in referring the case to the Human Relations Commission as described in the EOHP, in preparing appropriate forms, and in contacting the HUD field office if required. 2. If legal questions arise in the appeals process, the City Attorney's office will provide appropriate support. K. Monitoring Program Performance 1. The two goals to be maintained in meeting the housing needs of Wichita Falls are serving the lower income families in Wichita Falls and keeping unit vacancies to a minimum. 2. The applicant mix will be monitored by the Housing Administrator. Thirty percent (30%) to forty percent (40%) of the applications will be issued to very low income families to maintain a participant level of 30%. Page 15 Qf 17 Pages Agenda Item No. 10.b. s ADMINISTRATIVE PLAN, page 8 3. In no event will the number of units under lease combined with the number of certificates issued exceed the number of units authorized. 4. The Community Development Section of the Planning Division will perform quarterly monitoring visits utilizing the HUD Handbook 7420.3 as a guideline to insure program achievement. 5. Program administration may be revised on an as needed basis with concurrence of the City and CAC. 6. Community Action Corporation will achieve a 95% occupancy rate of all approved units by the end of the first quarter of the fiscal year. Each successive quarter will maintain a 95% occupancy rate. In order to achieve and assure this minimum level, a monthly bedroom utilization report will be provided to the City (copy attached). In addition to the completion of this report, a narrative of objectives will be attached which will clearly outline the activities to be conducted during the coming month. This activities list will indicate the work elements required to assure a 95% occupancy rate and the inspection requirements to be met. 7. The Community Action Corporation has established the following goals and objectives to be attained during the program year. These objectives shall be included in the monthly report to the City and monitored by the City on a quarterly basis. GOALS AND OBJECTIVES The additional part-time employee will assist the Section 8 Housing Office in accomplishing the following goals and objectives during the next year. Owner Outreach: To promote greater housing opportunities. 1. To become a member of the Rental Property Association and meet with at least five members of the association each month. 2. To meeting with the Board of Realtors at least quarterly. 3. To meet with at least five property management concerns each month. 4. To contact the North Texas Rental Property Association. Tenant Outreach: To stimulate tenant applications and participation. 1. To visit with Neighborhood Action Groups quarterly. 2. To visit with Senior Citizen groups at least quarterly. 3. To visit with at least 15 tenant families each month in their homes. 4. To distribute information brochures to all local agencies and organizations that are contacted by lower income families and elderly, handicapped, or disabled families. Pang 1_A of 1.7 Paves Agenda Item No. 10.b. ADIGIINISTRATIVE PLAN, page 9 Administrative: 1. To maintain 95% occupancy. 2. To maintain a list of available rent properties by contacting all owners at least once a month. 3. To review 25% of all tenant records quarterly. 4. To spot check at least 15 rental units a month. 5. To maintain adequate utility allowances by getting actual bills of 25 units by size annually. 6. To submit quarterly articles about the program to the newspaper. 7. To maintain rent reasonableness. 8. To publish a monthly newsletter for all property owners and managers. Page 17 of 17 Pages Agenda Item No. 10.b.