Loading...
HomeMy WebLinkAboutMINUTES - 07232002 - C94 C.94 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Carder on July 23, 2042,by the following vote: AYES: Supervisors Uilkema, Gerber,DeSaulnier, and Glover NOES: None ABSENT: Supervisor Gioia ABSTAIN: Done Subject: Correspondence C.94 Letter dated June 24, 2442 from the U.S. Department of Housing and Urban Development, California State Office, 454 Golden Gate Avenue, San Francisco, CA 94142, forwarding Report of Review of the Housing Authority of County of Contra Costa's Section 8 Tenant-Based Program. IT IS BY THE BOARD ORDERED that the above mentioned matter is REFERRED to the County Administrator. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. Attested:Julv 23,2002 John Sweeten,Clerk of the Board of Supervisors and County Administrator f F Y � � Deputy Clerk. U.S.Department of Housing and Urban Development pY+ rtit�; j6G - j g California State Office f/djJ 45i'#Golden Gate Avenue San Francisco,California 94102 http://www.hud.gov Mr, John Gioia UN 2 4 201;2 Chairperson Housing Authority of the County of Contra.Costa Board of Commissioners 11784 San Pablo Avenue El Cerrito, CA 94530 Dear Mr. Gioia: Enclosed please find a Report of our Review of the Housing Authority of the County of Contra Costa's (HACCC) Section 8 Tenant-Based Program. Ms. Mamie Dunn, Ms. Claire Garcia, Ms. Shirley Thomas, and Mr. Salem Prouty, of my staff, conducted the review from April 25-28, 2442. We thank the entire staff of the HACCC for their very courteous cooperation and assistance during the review. Our report includes six findings, two concerns, and two observations. We ask that the Board review the report and provide this office with the HACCC's responses to the findings, concerns and observations made in the report within the next 45 days. As part of our review, we also conducted a limited monitoring review of the Section 8 Existing Civil Rights related program requirements. We will submit a copy of this report and the checklist used for this monitoring to our Office of Fair Housing and Equal Opportunity in accordance with program requirements. Ms. Shirley Thomas,Facilities Management Specialist, and Mr. Salem Prouty, General Engineer also conducted a random sampling of the Housing Authority's Low.Rent Public Housing units identified by the Real Estate Assessment Center(REAL)as having Exigent Health and Safety violations to verify completion of repairs, REAL conducted its annual inspection in June 200 1. During our on-site inspections, we inspected these units to ensure that the Housing Authority had addressed these violations as certified. The Housing Authority corrected the items cited by the inspector within the time limits specified by the regulations and certified them to the field office. We observed that all the repairs had been completed as per the Housing Authority's certification. Please feel free to contact Ms. Dunn, Public Housing Revitalization Specialist, at(415) 436-8395, if you have any questions about the report's content. Sincerely, Joyce L. Lee Director Office of Public Housing San Francisco Enclosure Executive Summary During the period of April 25-28, 2002, members of my staff conducted a Review of the Housing Authority of the County of Contra Costa's (HACCC) Section 8 Tenant-Based Program. Our objectives were to determine whether the HACC effectively and efficiently administers its Section 8 Program activities in compliance with HUD's requirements. Regulations governing the Tenant-based Section 8 Program are found in 24 Code of Federal Regulations(CFR.)982. Part 5 of the same code of Federal Regulations contains HUD Program requirements common to all HUD-funded rental assistance programs. This part deals primarily with income, eligibility, and admission requirements. HUD's Section 8 Management Assessment Program(SEMAP) regulations are contained in 24 CFR Part 985. Overall, this office concluded that the HACCC satisfactorily runs the Section 8 Tenant- Based Program in accordance with program regulations. Our review focused on three components of the Authority's day to day operations: General Program Management, Facilities Management and Financial Management In order that you may better understand this report, the following definitions are provided: A Finding is considered a serious violation of a statue, regulation or the Annual Contributions Contract(ACC). A Concern is a violation of a HUD policy or a housing agency process or policy that has the potential to lead to a violation of a statue, regulation or the Annual Contributions Contract(ACC). An Observation is a comment on what the reviewer observed to be a housing; authority practice. An observation may be considered either as a positive practice worthy of recognition or as a practice that is considered a weakness. A Corrective Action is the action the housing authority must take to clear the finding. A Recommendation is a suggestion and or technical assistance to improve the programs. At the entry meeting the HUD monitoring team explained the objective, purpose and scope of the review and responded to any of the Public Housing Agency's (PHA) staff questions. We discussed the results of our review at the exit conference held on April 28, 2002, with the following PHA staff: • Mr. Robert McEwan, Executive Director • Mr. Rudy Tamayo, Deputy Executive Director for Operations • Mr. Nick Chhotu, Assistance Director Housing Operations, Housing Choice Voucher Program • Ms. Beth Campbell, Acting Internal Auditor, Housing Operations + Mr. Bekulesh Patel, Director of Finance Introduction The Housing Authority of the County of Contra Costa administers 6,687 units under the Section 8Tenant Based Program, The Housing Authority has several special programs such as the Family Sufficiency Program and Family Unification Program. The HACCC also administers the Section 8 Moderate Rehabilitation Program and the Section 8 SRO Moderate Rehabilitation Program, Shared Housing, and Shelter Plus Care Program, The Housing Authority Commission is the governing board of the HACCC and consists of five members and one Tenant commissioner. Mr. Robert McEwan, the Executive Director, is responsible for daily operations and oversees the staff: The staff has attended various NAHRO workshops and Nan McKay training on the Section 8 program. During the Section 8 Management Review, we asked the Section 8 staff to complete a questionnaire. The purpose of the questionnaire was to determine if the staff'understands their role in the Section 8 program and to determine where any training needs may be. We have listed below the Section 8 training requested by the staff: • Additional training on shared housing and mobile homes. • Continued training on regulation changes. • Housing Manager Training • Training on medical deductions. • Training on Rent Calculation • Update classes on the Housing Choice Voucher Program • Housing Quality Standards(HQS) Training • Advance Inspector Training. Management should ensure that staff receives the training they need to strengthen their ability to better know and understand the HACCC policies and HUD rules pertinent to their job. All staff'should receive the following information to keep up with HUD regulations: • Updated copies of the Federal Regulations • HUD Notices • PHA Newsletters • Internet access at work site • Access to HUD's Client Information and Policy System(HU'DCLIPS) at http://www.hudclips,,or • Multi-family Tenant Characteristic System (MTCS)Web Site at ttp://www.hud.Rov/t)ih/systems/mtes/Dihmtcs.html Program plana e-ragnt This section of the review examines performance and compliance with the regulations and guidelines governing management of the Section 8 Tenant-Based Program. The review focuses on the following areas: • Tenant File Review • Ineligible/Termination/Hearing Procedures • Waiting List • Organization Chart • Briefing Packet • Section 8 Administrative Plan • :Rent Reasonableness • Utility Allowance Schedule • Family Self-Sufficiency Program Ineligible/Termination/Rearing Files Our review of the ineligible, termination, and informal review/hearing files indicated compliance with HUD regulations. The ineligible and termination files contained the following items: • A written description of the reasons the Agency denied or terminated assistance • A request from the applicant family or participant family requesting an informal review or informal hearing • All required supporting documents • A copy of the final decision Waiting List In accordance with regulation 24 CFR 982.204(b), the HACCC's waiting list contains the following information for each applicant listed. 1. Applicant Name 2. 'Family Unit Size 3. Date and Time of Application 4. Qualification for Any Local Preference 5. Racial or Ethnic Designation of the Head of the Household Organization Chart The HACCC `s organizational chart of the Housing Choice Department shoves that the staffingpattern is adequate to administer the Housing Choice Voucher Program and staff is adequately supervised. Utility Allowance Schedule The HACCC reviews its utility allowance schedule annually and adjust it, if necessary. The Agency prepares the utility allowance schedule on the HUD Form 52667, Allowances for Tenant-Furnished Utilities, and Other Services and submits a copy of the schedule to HUD. HUD requires that the PHA must give HUD a copy of the utility allowance schedule. Family-Self-Sufficiency Program The Housing Authority of the County of Contra Costa operates a Section 8 Family Self- Sufficiency elfSufficiency Program(FSS). The objective of the FSS program is to reduce the dependency of low-income families on welfare assistance, on Section 8 vouchers, public housing, or any Federal, State, or local rent or homeownership subsidies. Under the FSS program, low-income families are provided opportunities for education,job training, counseling, and other forms of social service assistance, While Irving in assisted housing, so that they may obtain the education, employment, and business and social skills necessary to achieve self-sufficiency. The HACCC has hired a Family Self-Sufficiency Program Coordinator, plus one FSS Counselor. Currently, the HACCC has 165 families enrolled in the FSS program. Sixty-eight (68) families have enrolled and completed their contract. Forty-seven(47) families have escrow account funds. One family was able to buy its oven home with the escrow account set up by the HACCC and matching funds of$10,000 through the Federal Home Loan Bank of San Francisco. In an effort to promote economic self-sufficiency, the HACCC recuritement activities for potential FSS participants include, but are not limited to the following; • Mailing informational brochures to all Section 8 clients, including FSS information in HACCC publications. • Posting FSS brochures on bulletin boards. • Providing informational brochures at the HACCC office and other social services agencies. The HACCC is in the process of implementing a new software system that Will improve its ability to beep track.of the FSS escrow account funds. At the time of our review, the Authority was auditing all the FSS escrow accounts to ensure that all balances are current before entering the information into the new computer system. Mr. Nick Chhotu has developed an Excel Spreadsheet the Authority uses each month to calculate the escrow credit at each annual reexamination or interim reexamination for its FSS participants. This will help the HACCC to keep better trach of the FSS families that have escrow account balances. Finding #1 -a Administrative Plan The HACCC's Administrative Plan refers to the following out dated parts of the Certificate and Voucher Rules: • Part 812 --Definition of Family and Other Related Terms; Occupancy by Single Person. • Part 813 —Definition of Income, Income Limits, Rent and Reexamination of Family Income for the Section 8 Housing Assistance Payments Programs and Related Programs. • Part 882— Section 8 Housing Assistance Payments Program—Existing Housing. • Part 887—Housing Vouchers. The old certificate rule part 882 only applies to the Moderate Rehabilitation Program; and the old',voucher rule part 887 is no longer applicable. In addition, crosscutting provisions are consolidated in HUD regulations at 24 CFR Part 5 and crossed-referenced in Part 982. Part 5 contains general provisions applicable to more than one of the Department's programs, and specifically, contains definitions of terms used in HUD programs. The HACCC does not address in its Administrative Plan the requirement of 24 CFR 982.54 (d)(4)(ii), regarding the definition of when a family is considered to be continuously assisted. We noted that the Administrative Plan was not available for public review at the main office. The administrative plan is a supporting document to the PHA plan. It must be available for public review. Corrective Action: The HACCC must revise its Administrative Plan to refer to the correct regulations in accordance with the following: • Code of Federal Regulation(CFR) 24 CFR Part 5 and Part 982. • The Federal Register Notices: - Section 8 Merger Rule, Final Rule published October 21, 1999. - Quality Housing and Work Responsibility Act of 1998 --Initial Guidance published February 18, 1999. - Changes to Admissions and (Occupancy Poiices,'Final Rule published March 29, 2000. In addition to the above, the HACCC must also update its Administrative Plan as follows: • In accordance with 24 CFR 982.54(d)(21), the Administrative Plan must include a policy on approval by the Board of Commissions or other authorized officials to charge the administrative fee reserve. • The HACCC must add in its Administrative Plan the new paragraph 24 CFR 982.54 (d)(4)(iii), Standards for Denying Admission or Terminating Assistance Based on Criminal Activity or Alcohol Abuse in accordance with 24 CFR 982.553. Please refer to the Federal Register published May 24, 2001. • In the Administrative Plan, on page 4-6, under Cross-Listing of Public Housing and Section 8, it states that the PHA will not merge the waiting lists for Public Housing and Section 8 etc. However, the PHA Plan states that the Federal Moderate Rehabilitation Program and Designated Housing for Person with Disabilities will be merged with the Section 8 waiting list. These two documents must be consistent, The policies incorporated in the adopted Administrative Plan must be in accordance with the PHA Plan. The HACCC must make a public copy of the Administrative Plan available in each of its satellite offices and the main office. To close this finding, please submit to this office a copy of the HACCC's updated Administrative Plan along with the Board Resolution adopting the revision. Also provide evidence that the Administrative Plan is available for public review at each satellite offices and the main office. Finding#2—Briefing Packet The HACCC's briefing packet does not fully comply with the requirement of 24 CFR 982.301. The briefing packet does not include all the required documents. In addition, on page 13 of the Briefing Handbook for the Section 8 Program, the PHA needs to correct the first sentence to read: "The maximum subsidy is the payment standard minus the total tenant payment (TTP). The TTP is the greater of the following: * 30% of monthly adjusted income • 10%of monthly gross income * The welfare rent (in as-paid states)only; or * The PHA minimum rent, The second sentence of the third line should read"Rent may exceed the Payment Standard if the family is willing to pay the difference, and it does not exceed 40% of the family's monthly adjusted income." Please refer to 24 CFR.982.508. • On page 15, of the Briefing Handbook, the HACCC need to revise the fourth sentence in accordance with 24 CFR.982.505 • On page 16, of the Briefing Handbook for the Section 8 Program, it refers to the Shopping Incentive. The merger of the certificate and voucher programs, effective October 1, 1999, eliminated the shopping incentive credit at the second reexamination after the merger date. • On page 16, of the Briefing Handbook, under Tenant Rent, the HACCC need to state that the family will not pay less than the Total Tenant Payment (TTP)toward rent and utilities. There is no shopping incentive. • Page 18, of the Briefing Handbook contains the Housing Choice Toucher Worksheet. The PHA must revise the last line to read"CANNOT EXCEED 40%Of:MONTHLY ADJUSTED INCOME" in accordance with 24 CFR 982.505. Corrective Action The HACCC's Briefing Packet must include all the contents in accordance with 24 CFR 982.301(b), In addition, the Agency must make corrections to the Briefing Packet Handbook, as stated above, on pages 13, 15, 16 and 18. To close this finding, please provide evidence that the HACCC have added all required documents to its briefing packet and revised the Briefing Packet Handbook and the Housing Choice Worksheet. Fundi 2##3—Rent Reasonableness A review of the Certificate of Rent Reasonableness used by the HACCC does not show that the PHA considers the following when determining comparability when conducting rent reasonableness: • Quality • Size • Age of the contract unit • Amenities • Housing Services • Maintenance Corrective Action: In accordance with 24 CFR 982,507(b)(1) and (2),the voucher program:rule requires that the PHA's system for determining comparability and reasonable rent take the following nine factors into consideration: 1. Location 2. Quality 3. Size 4. Unit Type 5. Age of the Contract Unit 6. Any Amenities 7. Housing services 8. Maintenance 9. Utilities to be provided by the owner in accordance with the lease. The HACCC must ensure that its rent reasonable data contain all of the above nine required factors when determining whether the rent to owner is a reasonable rent in comparison to rent for other comparable unassisted units. To close this finding, please provide evidence that the HACCC has developed a form that contains all of the above nine required factors for documenting the rent reasonableness determination and a sample of recent rent determinations. Finding#4-Passbook Rate The HACCC is using an incorrect passbook rate of 2.3%to calculate the total cash value of all assets held by a family that are greater than $5,000. The correct passbook rate is 2.0°/a. If not corrected this could prevent the Agency from correctly calculating the family rate. Corrective Action. The HACCC must change the passbook rate on its form HITD-50058 from 2.3 %to 2.0% and calculate assets exceeding $5,000 based on the 2.0%passbook rate approved by HUD. In addition, the 2%passbook rate must show on all the 50058 Facsimile forms in each tenant file. Observiition#1 - Tenant File Review We reviewed 10 tenant files to ascertain the adequacy of the PHA's income, asset, deduction and rent calculation process, its third party verification process, and the appropriateness of its utility allowance determinations. These are all components of SEMAP Indicator 3, Determination of Adjusted Income. The HACC performs the annual and interim reexamination on a timely basis. We found that the adjusted income and rent computations contained in the files were calculated properly. The Income Limits, Fair Market Rents and Payment Standard used by the Authority were accurate and up to date. Each tenant file contained a signed Authorization for Release of Information Act Notice. The files contained adequate evidence of third parry documentation, verification and documentation of Social Security Lumbers, and Citizenship and Immigration Status. The HACCC verifies the rent burden for new lease-ups so that it does not exceed 40 percent'of the family's monthly adjusted income when the gross rent for the unit exceeds the applicable payment standard for the family. However, we noted the fallowing deficiencies from the sampling of tenant files: • We noted that the HACCC used the consent page of HUD's form 9886, "Authorization for Release of Information"to obtain Beverly Batton's signature and attached it to the PHA-developed verification of income used to verify her income with her employer, Headquarters must approve any modifications to the required HUD Form 9886. • The tenant files for Kathleen F. Matagulay and Willene Hilton contained a Section 8 Lottery Pre-Application. We could find no policy in the Section 8 Administrative Plan regarding applicants selected for the waiting list by lottery. The Section 8 Administrative flan states that the HACCC select applicants from the waiting list by date and time. • In each tenant file, the background at admission, section#4, on the Public Housing HUD 50058 Facsimile Form Print out was not completed. • The tenant files did not have necessary required signatures and dates on some of the forms. • The forms in the tenant files were marked-up. For example the staff crossed out the incorrect information and wrote in the new information. • We could not locate in Bevery Batton's and.Mary DeFazio's file the Declaration of Citizenship and Immigration Status. •' The tenant file for Kathleen Matagulay contained loose papers. • We could not locate in the tenant file for Karim& Tahera Naeim the Housing Assistant Payments Contract and lease addendum for the rent change effective February 1, 2002. Also, there was no evidence that the PHA determined if the rent increase is reasonable. • We noted that the tenant file for Clarla Alexander contained the outdated"Request for Lease Approval form.HUD 52517 (5199), Recommendation: The HACCC should develop its own consent agreement farm signed by the applicant/participant for each type of income. For example, the Authority could say"I hereby authorize and request_..,Mame of Agency)_to famish the information requested which is necessary to determine my eligibility for housing assistance. Date Signature All forms must contain all information and have the required signatures. The HACCC should also use the Request for Tenancy Approval Housing Choice Voucher Program form HUD- 52517 (7/2000). The staff can download these forms from HUDCLIPS. A supervisory staff member should perform spot checks of the tenant files to ensure that the HACCC meets its responsibility for adequate verification and documentation. Facilities MangSement. Section 8 Facilities Management: Shirley Thomas, Facilities Management Specialist and Salem Prouty, General Engineer, conducted HQS inspections at a random sampling of properties under the HAP contract. Ms. Thomas inspected properties on the western side of the County, and Mr. Prouty inspected properties on the eastern side. We did not review the procurement policy, or the HACCC's contracts. Housing Quality Standards: Our inspection of thirty-four(34)of the Housing Authority's Section 8 units was done for the purpose of determining the Public Housing Authority's ability to administer the Section 8 program. The primary objective of these standards is to protect the tenant receiving assistance under the program by guaranteeing what HUD considers is a basic level of acceptable housing. Federal Regulations 24 CFR 965, subpart F, 965.601 state: "Housing owned or leased by a PHA .must be maintained in accordance with the physical condition standards in 24 CFR part 5, subpart G. We conducted inspections of the selected Section 8 units in accordance with the Housing Quality Standards (HQS) requirements of 24 CFR, Part 982-Section 8, Subpart 1 using for HUD- 52580. In the course of our inspections, we looked for HQS violations, emergency health and safety violations; maintenance treads(items not being maintained) and non-routine maintenance work items in need of replacement. The units were found to be in generally gond condition, and the HousingAuthority corrected the items cited while we were on site. Qbservation #2: The administration building in San Pablo was found to be difficult to open for the elderly and physically challenged. 29 CFR 35.133 states: A public entity shall maintain in operable working condition those features of facilities and equipment that are required to be readily accessible to and usable by persons with disabilities. Recommendation: Even though your agency is in compliance with the 504 requirements, (measurements) it is recommended that your agency install an automatic opener for the convenience and use of the physically challenged. Finding#5: During our review of the files it was determined that the inspectors for the Contra Costa Housing Authority are allowing too much time for the correction of health and safety issues. Corrective Action: The Housing Authority inspectors must review the CFR's, and become familiar with the items that are considered "life threatening„ and warrant a 24-hour notice to repair. All life-threatening deficiencies must be corrected within twenty-four hours(24)of inspection and all other cited HQS deficiencies must be corrected no more than 30 calendar days from the inspection unless the PHA approved an extension of time for correction. (Extensions must not be granted',liberally and records of extensions are to be recorded) Quality Controls Finding #6s The Contra Costa Housing Authority is not conducting the supervisory quality Controlinspections. Corrective Action: The PHA must in accordance with Regulation 24 CFR 982.305(b)conduct supervisory quality control inspections, establish, and maintain the supervisory quality control log. A PHA supervisor or other qualified person must re-inspect a sample of units under contract during the last PHA fiscal year. Completed HQS inspections included in the sample must be no older than three months at the time of the re-inspection. The sample must represent a cross section of neighborhoods where program units are located and inspections completed by all HQS inspectors. The sample should also include a cross-section of initial and annual inspections. The PHA must maintain a quality control tracking log for each year, which indicates the tenant name, address of unit, date of original inspection, inspector, date of quality control inspection, results of the quality control inspection, and location of the unit by neighborhood. Lead Based Paint: The PHA is operating within the guidelines for the lead-based paint procedures. Financial Management The financial management review focused on the housing authority's internal controls, accuracy and timeliness of financial documents, lease-up rates and investments. The current finance director has been working at the housing authority since July of 2000. He has made improvements to the internal controls and. staffing. A budget analyst was recently hired to take over the duties of preparing all budget documents. The voucher program unit lease up rate at the end of February 2002 according to the HAs summary is 93%. A review of the HAs lease up rates will be made upon receipt of the year-end settlements. The housing authority does not anticipate that there will be any over requisitioning at fiscal year end. A sample of the tenant files were reviewed and compared to the housing assistance register (HAP). There were no discrepancies. The HAP payments to owners are made in a timely fashion. The investment policy was reviewed and found to be sound.. The internal controls are adequate and assets are safeguarded. The HA fiscal division in summary, is well managed and financially sound. There were no findings but two concerns that do need to be addressed. Concern#1 Section 8 fiscal documents are not submitted timely. The HA does request and receives generous time extensions. However, our office does not want the requests to become routine. Now that a budget analyst has been hired, the HA does not anticipate that this will be an issue. Concern #2 There is no operating reserve threshold. Per CFR 982.155 (b)(2), the PHA Board of Commissioners must establish the maximum amount that may be charged against the administrative fee reserve without specific approval. The fiscal director has scheduled the threshold issue as an agenda item for the Beard meeting on April 25, 2002.