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Home My WebLink AboutHA Item 3 - Section Eight Management Assessment Program High Performer Certification Community Development Agency www.santa-ana.org/cd Item # 3 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report October 7, 2025 TOPIC: Section Eight Management Assessment Program High Performer Certification AGENDA TITLE Section Eight Management Assessment Program High Performer Certification for Fiscal Year Ending June 30, 2025 RECOMMENDED ACTION Receive and file the Section Eight Management Assessment Program High Performer Certification for Fiscal Year Ending June 30, 2025. GOVERNMENT CODE 484308 APPLIES: No DISCUSSION For the eighth consecutive year, the Housing Authority of the City of Santa Ana (SAHA) has been designated a High Performer by the U.S. Department of Housing and Urban Development (HUD) under the Section Eight Management Assessment Program (SEMAP). This prestigious designation recognizes SAHA as one of the nation's top- performing public housing authorities in administering the Housing Choice Voucher Program. It reflects the dedication and expertise of SAHA staff in delivering high-quality housing assistance to the community's most vulnerable residents. SEMAP is HUD's performance management system for evaluating the management and administration of the Housing Choice Voucher Program. It measures efficiency, regulatory compliance, and program quality across 14 performance indicators, including waiting list management, determination of adjusted income, inspections, utilization, and family self-sufficiency. In general, SEMAP is HUD's framework for monitoring and measuring the performance of public housing authorities. Public housing authorities (PHAs) that score above 90% are designated as High Performers while those that score below 60% are designated as Troubled and placed under HUD oversight. SAHA's SEMAP score for Fiscal Year Ending (FYE) June 30, 2025 was 90%. SAHA earned perfect scores in 10 out of the 14 SEMAP performance indicators. To achieve this success, since July 2015, SAHA has maintained a quality control program that exceeds HUD's minimum performance management requirements for SEMAP, demonstrating a commitment to program integrity and service excellence. For example, to measure performance under SEMAP Indicator# 3 (Determination of Adjusted Section Eight Management Assessment Program High Performer Certification October 7, 2025 Page 2 Income), staff audited 432 randomly selected tenant files, equal to 12 times the number of files that HUD requires staff to audit. This extraordinary effort ensures accurate housing assistance calculations for every family served. Program utilization stands out as another key SEMAP performance indicator of the SAHA's success and serves as a vital measure of how effectively staff utilizes available funding to provide housing assistance to vulnerable families in the community. For SEMAP indicator# 13 (Lease-Up), SAHA utilized 106.4% of its Budget Authority in Calendar Year 2024 ("Budget Authority" is the amount of funds provided by HUD each Calendar Year). The excess above 100% is covered by housing assistance payments (HAP) reserves and recuperated the following year with additional funds authorized by HUD. Over the last five years, sustained efforts to utilize and maximize available funds have increased rental assistance funding for residents by more than $15 million: Calendar Total Budget Authority Allocated Budget HAP Expense as Year Expended Authority % of Eligibility (HAP Expense) (Eligibility) 2020 $36,624,763 $35,819,279 102.2% 2021 $39,417,200 $38,739,843 101.7% 2022 $42,392,321 $40,497,979 104.7% 2023 $47,195,265 $45,630,128 103.4% 2024 $52,303,277 $49,152,885 106.4% The Family Self-Sufficiency (FSS) program also continues to excel, and over the last four (4) years, participation in the program has increased with enrollment at 263% of the mandatory requirement by HUD. This underscores SAHA's commitment to helping families achieve economic independence. _v•v iva r, ors _U22 2023 2024 2025 F55 PARTICIPANTS Section Eight Management Assessment Program High Performer Certification October 7, 2025 Page 3 FSS participants sign a 5-Year Contract of Participation, work toward goals for self- sufficiency and employment, and strive to graduate by completing their contract goals and maintaining self-sufficiency without assistance for a year. Over the last five (5) years, 45 families have successfully graduated from the FSS program. As the family's income increases, a portion of that increase is deposited into an interest-bearing escrow account that they receive (with the accumulated interest) upon graduation. Most recently, a graduation ceremony was held at the WORK Center in September to celebrate 13 new graduates from the program. This High Performer designation underscores SAHA's leadership among public housing authorities across the country. By exceeding utilization, maintaining strict quality controls, and investing in family self-sufficiency, SAHA provides a local model of excellence. For the community, this translates into more families housed, accurate housing assistance payments for each family, higher quality units maintained, and residents moving toward economic independence. FISCAL IMPACT There is no fiscal impact associated with this item. EXHIBIT(S) 1. Housing Authority of the City of Santa Ana SEMAP Score for FYE June 2025 2. SEMAP Certification for FYE June 2025 Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nunez, City Manager EXHIBIT 1 PteeNr°F U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT q 300 North Los Angeles Street,Suite 4054 Z0915 IIIIIIII �� Los Angeles,CA 90012 9e4N uevE'°� OFFICE OF PUBLIC HOUSING September 19, 2025 Mr. Judson Brown Executive Director Housing Authority of the City of Santa Ana 20 Civic Center Plaza, M-27 Santa Ana, CA 92701 Dear Mr. Brown: Thank you for completing your Section 8 Management Assessment Program (SEMAP) certification for the Housing Authority of the City of Santa Ana. We appreciate your time and attention to the SEMAP assessment process. SEMAP enables HUD to better manage the Section 8 tenant-based program by identifying PHA capabilities and deficiencies related to the administration of the Section 8 program. As a result, HUD will be able to provide more effective program assistance to PHAs. The Housing Authority of the City of Santa Ana's final SEMAP score for the fiscal year ended 6/30/2025 is 130. The following are your scores on each indicator: Indicator 1 Selection from Waiting List(24 CFR 982.54(d)(land 982.204(a)) 15 Indicator 2 Reasonable Rent (24 CFR982.4, 982.54(d)(15), 982.158(f)(7) and 982.507) 20 Indicator 3 Determination of Adjusted Income (24 CFR part 5, subpart F and 24 CFR 982.516) 15 Indicator 4 Utility Allowance Schedule (24 CFR 982.517) 5 Indicator 5 HQS Quality Control (24 CFR 982.405(b)) 5 Indicator 6 HQS Enforcement(24 CFR 982.404) 0 Indicator 7 Expanding Housing Opportunities 5 Indicator 8 Payment Standards (24 CFR 982.503) 5 Indicator 9 Timely Annual Reexaminations (24 CFR 5.617) 10 Indicator 10 Correct Tenant Rent Calculations (24 CFR 982, Subpart K) 5 Indicator 11 Pre-Contract HQS Inspections (24 CFR 982.305) 5 Indicator 12 Annual HQS Inspections (24 CFR 982.405(a)) 10 Indicator 13 Lease-Up 20 Indicator 14 Family Self-Sufficiency(24 CFR 984.105 and 984.305) 10 Indicator 15 Deconcentration Bonus N/A Your overall performance rating is High. Your PHA has eared a total of 130 points out of 145 possible points. EXHIBIT 1 Thank you for your cooperation with the SEMAP process. Should you have any questions regarding this matter,please contact Liseth Aguilera, Portfolio Management Specialist, at(213) 534- 2595 or Liseth. Aguileraghud._oovv. Sincerely, 16�111�112`�6f Rudy Rodriguez Division Director Office of Public Housing EXHIBIT 2 Section 8 Management Assessment U.S. Department of Housing OMB Approval No. 2577-0215 and Urban Development (exp. 12/31/2026) Program (SEMAP) Offi ce of Public and Indian Housing Certification Public reporting burden for this collection of information is estimated to average 12 hours per response, including the time for reviewing instructions, searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information. This agency may not conduct or sponsor,and you are not required to respond to, a collection of information unless it displays a currently valid OMB control number. This collection of information is required by 24 CFR sec 985.101 which requires a Public Housing Agency(PHA)administering a Section 8 tenant-based assistance program to submit an annual SEMAP Certification within 60 days after the end of its fiscal year. The information from the PHA concerns the performance of the PHA and provides assurance that there is no evidence of seriously deficient performance. HUD uses the information and other data to assess PHA management capabilities and deficiencies,and to assign an overall performance rating to the PHA. Responses are mandatory and the information collected does not lend itself to confidentiality. Instructions Respond to this certification form using the PHA's actual data for the fiscal year just ended. PHA Name For PHA FY Ending(mm/dd/yyyy) Submission Date(mm/dd/yyyy) Housing Authority of the City of Santa Ana 06/30/2025 08/25/2025 Check here if the PHA expends less than$300,000 a year in Federal awards Indicators 1 -7 will not be rated if the PHA expends less than$300,000 a year in Fe era awards and its Section 8 programs are not audited for compliance with regulations by an independent auditor. A PHA that expends less than $300,000 in Federal awards in a year must still complete the certification for these indicators. Performance Indicators 1. Selection from the Waiting List. (24 CFR 982.54(d)(1)and 982.204(a)) (a) The PHA has written policies in its administrative plan for selecting applicants from the waiting list. PHA Response Yes FV No F7 (b) The PHA's quality control samples of applicants reaching the top of the waiting list and of admissions show that at least 98%of the families in the samples were selected from the waiting list for admission in accordance with the PHA's policies and met the selection criteria that determined their places on the waiting list and their order of selection. PHA Response Yes ✓0 No E] 2. Reasonable Rent. (24 CFR 982.4,982.54(d)(15), 982.158(f)(7)and 982.507) (a)The PHA has and implements a reasonable written method to determine and document for each unit leased that the rent to owner is reasonable based on current rents for comparable unassisted units(i)at the time of initial leasing,(ii)before any increase in the rent to owner,and(iii)at the HAP contract anniversary if there is a 5 percent decrease in the published FMR in effect 60 days before the HAP contract anniversary. The PHA's method takes into consideration the location, size, type, quality, and age of the program unit and of similar unassisted units, and any amenities, housing services, maintenance or utilities provided by the owners. PHA Response Yes No F1 (b) The PHA's quality control sample of tenant files for which a determination of reasonable rent was required shows that the PHA followed its written method to determine reasonable rent and documented its determination that the rent to owner is reasonable as required for(check one): PHA Response a At least 98%of units sampled EJ 80 to 97%of units sampled El Less than 80%of units sampled 3. Determination of Adjusted Income. (24 CFR part 5,subpart F and 24 CFR 982.516) The PHA's quality control sample of tenant files shows that at the time of admission and reexamination,the PHA properly obtained third party verification of adjusted income or documented why third party verification was not available;used the verified information in determining adjusted income;properly attributed allowances for expenses;and,where the family is responsible for utilities under the lease,the PHA used the appropriate utility allowances for the unit leased in determining the gross rent for(check one): PHA Response 1-1 At least 90%of files sampled 171 80 to 89%of files sampled EJ Less than 80%of files sampled 4. Utility Allowance Schedule. (24 CFR 982.517) The PHA maintains an up-to-date utility allowance schedule. The PHA reviewed utility rate data that it obtained within the last 12 months,and adjusted its utility allowance schedule if there has been a change of 10%or more in a utility rate since the last time the utility allowance schedule was revised. PHA Response Yes ✓0 No a 5. HQS Quality Control Inspections. (24 CFR 982.405(b)) A PHA supervisor(or other qualified person)reinspected a sample of units during the PHA fiscal year,which met the minimum sample size required by HUD(see 24 CFR 985.2),for quality control of HQS inspections. The PHA supervisor's reinspected sample was drawn from recently completed HQS inspections and represents a cross section of neighborhoods and the work of a cross section of inspectors. PHA Response Yes a No E] 6. HQS Enforcement. (24 CFR 982.404) The PHA's quality control sample of case files with failed HQS inspections shows that,for all cases sampled,any cited life-threatening HQS deficiencies were corrected within 24 hours from the inspection and,all other cited HQS deficiencies were corrected within no more than 30 calendar days from the inspection or any PHA-approved extension,or,if HQS deficiencies were not corrected within the required time frame,the PHA stopped housing assistance payments beginning no later than the first of the month following the correction period,or took prompt and vigorous action to enforce the family obligations for(check one): PHA Response a At least 98%of cases sampled FZ Less than 98%of cases sampled form HUD-52648(01/2024) Previous edition is obsolete Page 1 of 4 ref. 24 CFR Part 985 EXHIBIT 2 7. Expanding Housing Opportunities. (24 CFR 982.54(d)(5),982.153(b)(3)and(b)(4),982.301(a)and 983.301(b)(4)and(b)(12)). Applies only to PHAs with jurisdiction in metropolitan FMR areas. Check here if not applicable (a) The PHA has a written policy to encourage participation by owners of units outside areas of poverty or minority concentration which clearly delineates areas in its jurisdiction that the PHA considers areas of poverty or minority concentration, and which includes actions the PHA will take to encourage owner participation. PHA Response Yes F1(I No F (b)The PHA has documentation that shows that it took actions indicated in its written policy to encourage participation by owners outside areas of poverty and minority concentration. PHA Response Yes F'( No F1 (c) The PHA has prepared maps that show various areas,both within and neighboring its jurisdiction,with housing opportunities outside areas of poverty and minority concentration;the PHA has assembled information about job opportunities,schools and services in these areas;and the PHA uses the maps and related information when briefing voucher holders. PHA Response Yes F71 No F1 (d) The PHA's information packet for voucher holders contains either a list of owners who are willing to lease,or properties available for lease,under the voucher program,or a list of other organizations that will help families find units and the list includes properties or organizations that operate outside areas of poverty or minority concentration. PHA Response Yes EV-1 No (e) The PHA's information packet includes an explanation of how portability works and includes a list of neighboring PHAs with the name,address and telephone number of a portability contact person at each. PHA Response Yes FV1 No F7 (f) The PHA has analyzed whether voucher holders have experienced difficulties in finding housing outside areas of poverty or minority concentration and,where such difficulties were found,the PHA has considered whether it is appropriate to seek approval of exception payment standard amounts in any part of its jurisdiction and has sought HUD approval when necessary. PHA Response Yes a No 8. Payment Standards. The PHA has adopted payment standards schedule(s)in accordance with§982.503. PHA Response Yes F-,-/-] No Enter FMRs and payment standards(PS) 0-BR FMR $2,352_ 1-BR FMR_$2,454 2-13R FMR $2,903_ 3-BR FMR _$3.927_ 4-BR FMR _$4,693 PS $2,211 PS $2,307 PS $2.729 PS $3.691 PS $4.411 If the PHA has jurisdiction in more than one FMR area,and/or if the PHA has established separate payment standards for a PHA-designated part of an FMR area,attach similar FMR and payment standard comparisons for each FMR area and designated area. 9. Annual Reexaminations. The PHA completes a reexamination for each participating family at least every 12 months. (24 CFR 982.516) PHA Response Yes IZI No 10. Correct Tenant Rent Calculations. The PHA correctly calculates tenant rent in the rental certificate program and the family rent to owner in the rental voucher program. (24 CFR 982, Subpart K) PHA Response Yes 21 No 1:1 11. Initial HQS Inspections. Newly leased units pass HQS inspection within the time period required.This includes both initial and turnover inspections for the PBV program.(24 CFR 982.305;983.103(b)-(d)). PHA Response Yes IZI No = 12 Periodic HQS Inspections. The PHA has met its periodic inspection requirement for its units under contract(982.405 and 983.103(e)). PHA Response Yes L r_.J No = 13. Lease-Up. The PHA executes housing assistance contracts for the PHA's number of baseline voucher units,or expends its annual allocated budget authority. PHA Response Yes a No = 14a. Family Self-Sufficiency Enrollment. The PHA has enrolled families in FSS as required. (24 CFR 984.105) Applies only to PHAs required to administer an FSS program. Check here if not applicable PHA Response a. Number of mandatory FSS slots(Count units funded under the FY 1992 FSS incentive awards and in FY 1993 and later through 10/20/1998. Exclude units funded in connection with Section 8 and Section 23 project-based contract terminations; public housing demolition, disposition and replacement; HUD multifamily property sales; prepaid or terminated mortgages under section 236 or section 221(d)(3);and Section 8 renewal funding. Subtract the number of 51 families that successfully completed their contracts on or after 10/21/1998.) 0 or,Number of mandatory FSS slots under HUD-approved exception form HUD-52648(01/2024) Previous edition is obsolete Page 2 of 4 ref.24 CFR Part 985 EXHIBIT 2 b. Number of FSS families currently enrolled 134 c. Portability: If you are the initial PHA,enter the number of families currently enrolled in your FSS program, but who have moved under portability and whose Section 8 assistance is administered by another PHA Percent of FSS slots filled(b+c divided by a) 263.00 14b. Percent of FSS Participants with Escrow Account Balances. The PHA has made progress in supporting family self-sufficiency as measured by the percent of currently enrolled FSS families with escrow account balances. (24 C FR984.305) Applies only to PHAs required to administer an FSS program. Check here if not applicable FI PHA Response Yes F No Ll 6 9 Portability: If you are the initial PHA,enter the number of families with FSS escrow accounts currently enrolled in your FSS program, but who have moved under portability and whose Section 8 assistance is administered by another PHA Deconcentration Bonus Indicator (Optional and only for PHAs with jurisdiction in metropolitan FMR areas). The PHA is submitting with this certification data which show that: (1) Half or more of all Section 8 families with children assisted by the PHA in its principal operating area resided in low poverty census tracts at the end of the last PHA FY, (2) The percent of Section 8 mover families with children who moved to low poverty census tracts in the PHA's principal operating area during the last PHA FY is at least two percentage points higher than the percent of all Section 8 families with children who resided in low poverty census tracts at the end of the last PHA FYI or (3) The percent of Section 8 mover families with children who moved to low poverty census tracts in the PHA's principal operating area over the last two PHA FYs is at least two percentage points higher than the percent of all Section 8 families with children who resided in low poverty census tracts at the end of the second to last PHA FY. PHA Response Yes F1 No 0 If yes,attach completed deconcentration bonus indicator addendum. I hereby certify under penalty of perjury that,to the best of my knowledge,the above responses are true and correct for the PHA fiscal year indicated above. I also certify that,to my present knowledge,there is not evidence to indicate seriously deficient performance that casts doubt on the PHA's ca ity to administer Section 8 rental assistance in accordance with Federal law and regulations. Warning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal a civil penalties,inclu ' g confinement for up to 5 years,fines,and civil and administrative penalties. (18 U.S.0 .§§287, 1001, 1010, 1012, 1014,31 U . .§37 ,3802). Executive Director, signature / Chairperson Bo d of Commis loners, signat e Date (mm/dd/yyyy) 08/25/2025 Da �dd/yy) 08/25/2025 The PHA may include with its SEMAP certification any information bearing on the accuracy oness of the information used by the PHA in providing its certification. form HUD-52648(01/2024) Previous edition is obsolete Page 3 of 4 ref. 24 C FRPart 985 EXHIBIT 2 SEMAP Certification - Addendum for Reporting Data for Deconcentration Bonus Indicator Date (mm/dd/yyyy) PHA Name Principal Operating Area of PHA ______ (The geographic entity for which the Census tabulates data) Special Instructions for State or regional PHAs Complete a copyof this addendum for each metropolitan area or portion of metropolitan area(Le.,principal operating areas)where the PHA has assisted 20 or more Section 8 families with children in the last completed PHA FY. HUD will rate the areas separately and the separate ratings will then be weighted by the number of assisted families with children in each area and averaged to determine bonus points. 2020 Census Poverty Rate of Principal Operating Area Criteria to Obtain Deconcentration Indicator Bonus Points To qualify for bonus points,a PHA must complete the requested information and answer yes for only one of the 3 criteria below. However, State and regional PHAs must always complete line 1)b for each metropolitan principal operating area. 1) a. Number of Section 8 families with children assisted by the PHA in its principal operating area at the end of the last PHA FY who live in low poverty census tracts. A low poverty census tract is a tract with a poverty rate at or below the overall poverty rate for the principal operating area of the PHA,or at or below 10%whichever is greater. b. Total Section 8 families with children assisted by the PHA in its principal operating area at the end of the last PHA FY. c. Percent of all Section 8 families with children residing in low poverty census tracts in the PHA's principal operating area at the end of the last PHA FY(line a divided by line b). Is line c 50%or more? Yes No 2) a. Percent of all Section 8 families with children residing in low poverty census tracts in the PHA's principal operating area at the end of the last completed PHA FY. b. Number of Section 8 familieswith children who moved to low poverty census tracts during the last completed PHA FY. c. Number of Section 8 families with children who moved during the last completed PHA FY. d. Percent of all Section 8 mover families with children who moved to low poverty census tracts during the last PHA fiscal year(line b divided by line c). Is line d at least two percentage points higher than line a? Yes 0 No 17 3) a. Percent of all Section 8 families with children residing in low poverty census tracts in the PHA's principal operating area at the end of the second to last completed PHA FY. b. Number of Section 8families with children who moved to low poverty census tracts during the last two completed PHA FYs. c. Number of Section 8 families with children who moved during the last two completed PHA FYs. d. Percent of all Section 8 moverfamilies with children who moved to low poverty census tracts overthe lasttwo completed PHA FYs(line b divided by line c). Is line d at least two percentage points higher than line a? Yes F7 No 0 If one of the 3 criteria above is met,the PHA may be eligible for 5 bonus points. See instructions above concerning bonus points for State and regional PHAs. form HUD-52648(01/2024) Previous edition is obsolete ref. 24 CFR Part 985