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HomeMy WebLinkAboutItem 05 - First Amendment to the Memorandum of Agreement for Inter-Jurisdictional Mobility Housing Authority https://www.santa-ana.org/cd Item # 5 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: First Amendment to the Memorandum of Agreement for Inter-Jurisdictional Mobility AGENDA TITLE: Approve a First Amendment to the Memorandum of Agreement for Inter-Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority, and Garden Grove Housing Authority RECOMMENDED ACTION Authorize the Executive Director of the Housing Authority to execute a First Amendment to the Memorandum of Agreement for Inter-Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority, and Garden Grove Housing Authority effective May 4, 2021, subject to non-substantive changes approved by the Executive Director and the Housing Authority General Counsel. DISCUSSION On June 6, 2017, the City Council approved a Memorandum of Agreement (MOA) for Inter-Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority and Garden Grove Housing Authority (Exhibit 1). Under the federal regulations for the Housing Choice Voucher Program, a family that has been issued a voucher by the Housing Authority of the City of Santa Ana (SAHA) has the right to use their voucher to lease a unit anywhere in the United States so long as the unit is located within the jurisdiction of a Public Housing Authority (PHA) administering a Housing Choice Voucher Program. The process by which a family obtains a voucher from one PHA and uses it to lease a unit in the jurisdiction of another PHA is known as portability. Approximately 735 families are exercising that right and reside outside of SAHA’s jurisdiction. Their rental assistance is administered by the Garden Grove Housing Authority (GGHA), Orange County Housing Authority (OCHA), and Anaheim Housing Authority (AHA) who bill SAHA each month for their vouchers. Under the federal regulations for the Housing Choice Voucher Program, SAHA does not have the authority to deny a family their right to port-out of Santa Ana with their voucher or to ask another housing authority to absorb those families into their programs. First Amendment to the Memorandum of Agreement for Inter-Jurisdictional Mobility May 4, 2021 Page 2 6 8 3 OCHA, AHA, and GGHA have had a Memorandum of Agreement in place for over ten years, and most recently renewed their existing five-year agreement in June 2017. SAHA has been a party to the MOA since then. This regional agreement between the four housing authorities in Orange County has proven to be successful and cost effective as a best practice recognized by the U.S. Department of Housing and Urban Development. It has even been replicated in the County of Los Angeles and staff has presented on it to housing authorities in Phoenix, Arizona. The MOA simplifies, facilitates, and improves inter-jurisdictional administration of the Housing Choice Voucher Program in Orange County by eliminating often cumbersome procedures that would otherwise be necessary under portability requirements. Under the MOA, when a family exercises their right to port- out, SAHA only needs to request an inspection of the assisted-unit requested by the family from the PHA who has jurisdiction over the geographic location of the unit, but the family’s housing assistance continues to be administered by SAHA. The MOA reduces the time it takes for families to move between housing authority jurisdictions in Orange County and allow SAHA, OCHA, and AHA to more efficiently administer our housing assistance. In addition to the administrative benefits being a part of this regional agreement, SAHA also retains 100 percent of the administrative fee for a family’s voucher outside of our jurisdiction in lieu of paying 80 percent of the Administrative Fee to a receiving PHA that is billing SAHA for the administration of the family’s voucher. SAHA currently disburses over $697,000 per year in Administrative Fees for port-out vouchers being administered by OCHA, AHA, GGHA and other housing authorities nationwide, with the majority in Orange County. If our Housing Authority were to ever decide not to be a party to this regional agreement, voucher assisted-families will still exercise their right to portability under the federal regulations for the Housing Choice Voucher Program and these costs would increase. In order to update the roles and responsibilities of the issuing PHA and the host PHA when using Project Based Vouchers (PBV) for HCV recipients and/or for Special Purpose Voucher (SPV) recipients in the host PHA’s jurisdiction, which may have different requirements than the HCV Program, SAHA is seeking approval to execute a First Amendment to the MOA (Exhibit 2). This First Amendment to the MOA is intended to update the responsibilities of the PHAs for inter-jurisdictional administration of the Housing Choice Voucher Program in Orange County by continuing to streamline procedures that would otherwise be necessary under program requirements. The First Amendment will improve coordination for the following: 1) environmental reviews and subsidy layering reviews when project-based vouchers are allocated by OCHA in the jurisdiction of the AHA, SAHA, or GGHA; 2) the inspection process for project-based vouchers in a host PHA’s jurisdiction; and 3) establishing the initial rent and tenant selection process. The First Amendment to the MOA will improve upon the existing MOA between the four housing authorities. It is important to note that while the MOA is officially between OCHA, AHA, SAHA and the GGHA, the Garden Grove Housing Authority is not willing to allow mobility between First Amendment to the Memorandum of Agreement for Inter-Jurisdictional Mobility May 4, 2021 Page 3 6 8 3 Santa Ana and Garden Grove so there is a provision in the original MOA that excludes coordination between Garden Grove and Santa Ana. The First Amendment to the MOA is contingent on approval by OCHA, AHA, and the Garden Grove Housing Authority. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this item. EXHIBIT(S) 1. Memorandum of Agreement (MOA) for Inter-Jurisdictional Mobility 2. First Amendment to MOA for Inter-Jurisdictional Mobility Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 Page 1 of 9 First Amendment to the Memorandum of Agreement for Interjurisdictional Mobility This First Amendment (Amendment), dated as of ________ 2020, is made to the Memorandum of Agreement for Interjurisdictional Mobility (Agreement) previously executed by and among the Public Housing Agencies (PHAs) of the Cities of Anaheim, Garden Grove, Santa Ana, (Cities) and the County of Orange (County), which are sometimes individually referred to as “Party” or collectively as “Parties”. Recitals The Parties entered into this Agreement in 2017 was to foster interjurisdictional mobility in the administration of the Department of Housing and Urban Development (HUD) Housing Choice Voucher (HCV) Program. The purpose of this Amendment is to address the roles and responsibilities of the issuing PHA and the host PHA when using Project Based Vouchers (PBV) for Housing Choice Voucher (HCV) recipients and/or for Special Purpose Voucher (SPV) recipients in the host PHA’s jurisdiction, which may have different requirements than the HCV Program. The Parties, recognizing the potentially different requirements for the PBV and SPV recipients in the host PHA’s jurisdiction are desirous to amend the 2017 Agreement. In consideration of the mutual obligations set forth herein, Parties agree as follows: 1.The Agreement is amended to add the following terms in the form of an attachment to the Agreement, to be named as follows: “ATTACHMENT II ADDITIONAL TERMS FOR ADMINISTRATION OF PROJECT BASED VOUCHERS (PBV) FOR HOUSING CHOICE VOUCHER (HCV) RECIPIENTS AND/OR FOR SPECIAL PURPOSE VOUCHER (SPV) RECIPIENTS IN THE HOST PHA’S JURISDICTION” (Attachment II). Attachment II is attached to this amendment and incorporated herein by reference. NOW THEREFORE, as the governing board of each of the PHAs has duly authorized, and in witness of the foregoing, the PHAs hereby execute this Amendment: EXHIBIT 2 Page 2 of 9 ORANGE COUNTY HOUSING AUTHORITY Julia Bidwell, Executive Director Date: APPROVED AS TO FORM: OFFICE OF THE COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA Deputy EXHIBIT 2 Page 3 of 9 ANAHEIM HOUSING AUTHORITY , Director Date: Approved as to Form: Assistant City Attorney Date ATTEST: By: City Clerk EXHIBIT 2 Page 4 of 9 GARDEN GROVE HOUSING AUTHORITY , Director Date Approved as to Form: City Attorney Date ATTEST: By: EXHIBIT 2 Page 5 of 9 SANTA ANA HOUSING AUTHORITY , Director Date: Approved as to Form: City Attorney Date ATTEST: By: for EXHIBIT 2 Page 6 of 9 ATTACHMENT II ADDITIONAL TERMS FOR ADMINISTRATION OF PROJECT BASED VOUCHERS (PBV) FOR HOUSING CHOICE VOUCHER (HCV) RECIPIENTS AND/OR FOR SPECIAL PURPOSE VOUCHER (SPV) RECIPIENTS IN THE HOST PHA’S JURISDICTION 1. Definition of Terms: “Agreement to enter into Housing Assistance Program contract (AHAP)”: The Agreement is a written contract between the PHA and the owner in the form prescribed by HUD. The Agreement defines requirements for development of housing to be assisted. When development is completed by the owner in accordance with the Agreement, the PHA enters into a HAP contract with the owner. “Environmental review”: The federally required review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and related applicable federal laws and authorities in accordance with 24 CFR 58.5 and 58.6. “Family Unification Program (FUP)”: FUP is a SPV program where vouchers are made available to families for whom the lack of adequate housing is a primary factor in the imminent placement of the family’s child, or children, in out -of-home care, or in the delay of discharge of the child, or children, to the family from out-of-home care. FUP vouchers are also made available to youths ages 18 to 25 who left foster care at age 16 or older who lack adequate housing. The FUP is generally administered in partnership with the Social Services Agency (SSA). “Housing Assistance Program (HAP) Contract”: The housing assistance payments contract between the PHA and the owner. “Non-Elderly Disabled (NED)”: Non-Elderly Disabled is a SPV program that is designed to provide assisted housing to families whose head, spouse, or co-head is disabled and under 62 as of the date of signing the HAP contract. NED Category 2 vouchers are specificall y for non- elderly people with disabilities transitioning from nursing homes or other health facilities into the community. “Responsible entity (RE)””: The unit of general local government within which the project is located that exercises land use responsibility for purposes of determining to whom the required Environmental Review should be submitted. “Special Purpose Vouchers (SPV)”: Special Purpose Vouchers are specifically provided for by Congress in line item appropriations which distinguish them from regular vouchers. Examples of SPV are Veteran Affairs Supportive Housing (VASH), Family Unification Program (FUP), Mainstream Vouchers, and Non-Elderly Disabled. EXHIBIT 2 Page 7 of 9 “Veteran Affairs Supportive Housing (VASH)”: VASH is a SPV program that combines HCV rental assistance for homeless veterans with case management and clinical services provided by the Department of Veterans Affairs at its medical centers and in the community. 2. Environmental Review and Subsidy Layering Review If the host City has funding or project-based vouchers in a project that triggers the need for an Environmental Review, the host City shall be responsible for the completion of an Environmental Review as outlined in 24 CFR part 50 and 58 for submission to the Responsible Entity(ies). The issuing PHA shall collaborate with and provide general guidance as necessary to the host City. The host City shall provide proof of submission, a copy of the Environmental Review and copy of the HUD form 7015.16 – Authority to Use Grant Funds, to the issuing PHA within 3 business days of its submission to the Responsible Entity(ies) and upon receipt of approval. If the host City does not have funding in a project, or if the host City’s funding in a project does not trigger an Environmental Review, the completion of an Environmental review shall be done by the PHA whose funding triggered the Environmental Review requirement. In the event a subsidy layering review (SLR) is necessary in accordance with the requirements of the Housing and Economic Recovery Act of 2008 (HERA) or to satisfy the requirements of section 102 (d) of the Department of Housing and Urban Development Reform Act of 1989 (HUD Reform Act) and is performed by the Housing Credit Agency (HCA), the PHA with Project Based Vouchers in the project shall be responsible for the SLR requirements. If the host PHA has vouchers in the project, the review responsibility shall default to the host PHA. The issuing PHA shall collaborate with and provide general guidance as necessary to the host PHA. The host PHA, if responsible for the SLR, shall provide proof of SLR submission, along with a copy of the SLR, to issuing PHA within 3 business days of its submission to the Responsible Entity(ies). The allocation of responsibilities in the above paragraphs may be subordinate to a negotiated agreement made outside of this document. AHAP/HAP Developer shall execute a separate AHAP as required, and HAP, for each participating PHA when two or more PHAs agree to issue project-based vouchers in an affordable housing project in a host PHAs jurisdiction. 4. Inspection EXHIBIT 2 Page 8 of 9 Pre-HAP contract inspections of the completed contract units shall be completed by the host PHA in adherence to 24 CFR 983.103, the executed AHAP, when applicable, and the MOA (2017 Agreement). The host PHA must inform the issuing PHA within seven (7) calendar days whether the work has been completed in accordance with regulation, the AHAP and/or MOA. In the event the host PHA is unable to meet the established deadline, the host PHA will allow the issuing PHA to inspect the completed contract units in order to limit delays in development. If the host PHA determines that work deficiencies exist, the host PHA shall notify the developer of the affordable housing project within seven (7) calendar days of the extent of the deficiencies and the requirements and procedures for correction of the contract units. Upon receipt of an inspection request for a turnover inspection or a Biennial inspection for contract units from an issuing PHA, the host PHA will complete the inspection and all related documentation, per 24 CFR 983.103 and FR Notice 6/25/14, within seven (7) calendar days of the date of the issuing PHA’s request. 5. Initial Rent Estimated initial rent to owner shall be established within a period consistent with the MOA (2017 agreement) by the host PHA. The initial contract rents for each unit shall not exceed the amount authorized per 24 CFR 983.301. The standards of the host PHA’s Payment Standards, Utility Allowances, Rent Reasonableness Standards, and HQS will apply. The Parties agree that the project developer shall maintain separate and distinct AHAP and HAP agreements for each participating PHA. 6. Tenant Selection The Parties agree that the awarded number of project-based vouchers from the awarding/issuing PHA is directly connected to a number of units within the project. To that end, the awarded project-based vouchers must remain available to the issuing PHA for use upon tenant turnover. Tenant selection determined by issuing PHA criteria. 7. Post Move in Activities MOA (2017 agreement) rules regarding Payment Standards, Utility Allowances, Rent Reasonableness Standards, and Housing Quality Standards (HQS) shall remain unchanged when applied to the use of Project Based Vouchers for Housing Choice Voucher recipients and/or for Special Purpose program voucher recipients in the host PHA’s jurisdiction. EXHIBIT 2 Page 9 of 9 The issuing PHA shall administer any additional post move in activities. EXHIBIT 2