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REQUEST FOR HOUSING <br />AUTHORITY ACTION <br />MEETING DATE: <br />JULY 2, 2019 <br />TITLE: <br />CONSIDER APPROVAL OF AGREEMENT <br />WITH NAN MCKAY AND ASSOCIATES FOR <br />REASONABLE RENT DETERMINATION <br />SOFTWARE NOT TO EXCEED $23,922 <br />OVER 3 YEARS <br />(STRATEGIC PLAN NO. 4, 1) <br />EXECUTIVE DIRECTOR <br />RECOMMENDED ACTION <br />RECORDING SECRETARY USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />CONTINUED TO <br />Authorize the Executive Director of the Housing Authority and Recording Secretary to execute an <br />agreement with Nan McKay and Associates to provide reasonable rent determination software <br />for the Housing Choice Voucher Program (GoSection8.com) in an amount not to exceed <br />$23,922, for a three-year term beginning July 2, 2019 through June 30, 2022, subject to non - <br />substantive changes approved by the Executive Director and the Housing Authority General <br />Counsel. <br />COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION <br />At its regular meeting on June 26, 2019, the Community Redevelopment and Housing <br />Commission (CRHC) recommended approval of the action above by a vote of 8:0 (Garcia <br />absent). <br />DISCUSSION <br />The Housing Authority of the City of Santa Ana (SAHA) is required to conduct a reasonable rent <br />comparison whenever a voucher holder moves into a new unit (at initial occupancy) or whenever <br />the owner requests a rent increase. Specifically, no Housing Assistance Payment contract can be <br />approved until SAHA has determined that the rent for the unit is reasonable. The purpose of the <br />rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the <br />Housing Choice Voucher (HCV) program. The regulations define a reasonable rent as one that <br />does not exceed the rent charged for comparable, unassisted units in the same market area. <br />HUD also requires that owners not charge more for HCV-assisted units than for comparable units <br />on the premises. To comply with this requirement, SAHA contracts for an online software to <br />conduct reasonable rent comparisons. SAHA is unable to manage and maintain local data on <br />current rents because of the constant changes in rent in the private market and SAHA does not <br />3-1 <br />