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Res 068-2002 7/2/2002k. RESOLUTION NO. RESOLUTION APPROVING AND ADOPTING THE THIRD YEAR ANNUAL UPDATE TO THE PUBLIC HOUSING AGENCY (PHA) PLAN; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, the City of Wichita Falls Housing Division, acting as a Public Housing Agency, administers the Section 8 Rental Assistance Program; and WHEREAS, the Housing Division staff has held a meeting with the Resident Advisory Board and conducted a public hearing to receive citizen input; and WHEREAS, during a Public Hearing, the full City Council, acting as the PHA's Board of Directors, has reviewed the PHA Plan and approves and adopts that plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. The City Council of Wichita Falls, Texas, hereby approves and adopts the Third Year Action Plan of the previously approved five year PHA Plan for the period October 1, 2002 to September 30, 2003. SECTION 2. The City Council authorizes the Housing and Community Development Administrator to submit this Action Plan. SECTION 3 It is hereby officially found and determined that the meeting at which this resolution was passed was open to the public as required by law. PASSED AND APPROVED this the 2 "d day of July, 2002. ATTEST: 1 LVLO City Clerk Executive Summary of the Annual PHA Plan The City of Wichita Falls, Texas operates the Section 8 Rental Assistance program completely separate from the Public Housing Authority. The elected members of the Wichita Falls City Council and the appointed City manager serve as the Board of Directors for this agency. The Housing Division is a part of the Community Development Department, and is the same agency that administers the Section 8, HOME and the Community Development Block Grant (CDBG) programs. It develops both the Consolidated Plan and the PHA Plan. This agency, as do all Section 8 -only PHAs, is required to submit a streamlined plan that addresses only selected parts of the full plan, without being required to complete those items that pertain only to Public Housing Authorities that operate low rent housing developments. We have received 279 vouchers in the past year, up from 710 vouchers for a total of 989. Based on information provided by HUD, the PHA can expect to have all expiring vouchers renewed at about the same level as current funding. Items that have changed since the development of the original five year plan: ■ The City has received 100 fair share new vouchers in August, 2001. ■ The City administered the conversion of 179 units from Holiday Creek Apartments to the tenant -based Section 8 program. ■ The total number of vouchers administered has risen from 710 to 989. ■ Lead -Based Paint Hazard regulations were required to be implemented January 10, 2002. These regulations have had a substantial impact on the landlords' willingness to rent to Section 8 tenants. ■ The U.S. Supreme Court ruled unanimously that the criminal and drug screening of applicants and tenants was constitutional in April, 2002. HUD also issued new regulations in the summer of 2001. The City has had to substantially revise our policies to meet these new regulations and implement the screening criteria. ■ The availability and affordability of vacant, rental property is extremely tight in the Wichita Falls' market at the current time. We have 162 applicants at the current time who cannot find units to rent. The tightness of the market, coupled with the Section 8 regulations, lead paint regulations and escalating rents are exacerbating low income tenants' search for housing. Staff is proposing to raise the payment standard from 105% to 110% of the Fair Market Rent. This is the maximum allowed by HUD, but might provide some relief in finding a unit to rent. ■ Due to new "incentives" for "success rate" vouchers, the City intends to extend the voucher issuance from 60 -days with a 30 -day extension to an automatic 90 -day search period. Activity During the October 2001 to September 2002 Fiscal Year 1. Staff prepared and had the second annual update of the original five -year PHA Plan approved. 2. Staff operated the Section 8 program with 100 additional vouchers in August 2001. 3. Staff administered the conversion of 179 units from Holiday Creek to the Section 8 tenant -based program. 4. Staff worked with both HUD and the Wichita Falls Public Housing Authority to lower that agency's vacancy rate and to provide better cooperation between the two local PHAs. The staff now asks all applicants if they want to be referred to the Housing Authority. The Housing Authority's vacancy rate has dropped to an average 40 units, which is basic turnover rates. 5. The City applied for $42,000 in funding for the Family Self- Sufficiency Coordinator for FY 2002. Last year's application was approved for $39,123. 6. Members of the staff met with the local health department to establish cooperative efforts to implement the new federal Lead Hazards regulations. Six City of Wichita Falls' employees have been trained and passed the State Certification for Risk Assessor for Lead Based Paint. 7. The City has sponsored five different trainings for supervisors, workers, and maintenance personnel for working on lead identified units. Several classes have also had to be canceled for lack of interest. 8. The City sent over 2,000 different mailers and reminders to Section 8 landlords to educate them on controlling lead hazards. 9. All members of the PHA staff completed the Visual Assessment Course for Lead Hazards. 10. Staff has spent many hours reviewing Multi- family Tenant Characteristics System (MTCS) data trying to get updated and correct data into the HUD MTCS system prior to change over to a new reporting system being implemented. The new PIC system still has many errors. 11. Staff has attended training on developing a Homeownership program for eligible Section 8 tenants under this new program option. 12. Staff has testified before the Texas Department of Housing and Community Affairs and Texas Bond Council on the need for multi - family bond financing and Low Income Housing Tax Credits to develop and set aside various affordable rental units. A 140 unit complex for the elderly opened during this period and construction has begun on a 114 unit family complex, both financed through tax credits. 13. Staff continues to work with HUD on developing a new methodology for Rent Reasonableness determination.